Automobile industry reported highest ever car sales in September

Automobile Sales September 2022

Indian Market
by 5paisa Research Team Last Updated: 2022-10-04T14:10:47+05:30

Sales of passenger cars in India, which had declined over the previous two years, have now resumed their pre-pandemic levels. In fact, the wholesale figures for September 2022 have established a new monthly benchmark with 3,55,946 units, which represents a 26 % growth MoM (August 2022: 2,81,210).

The record wholesale figure for September 2022 is higher by 4% compared to July 2022's 3,41,370 units, 6.5 % higher compared to October 2020's 3,34,411 units, and 12% higher compared to March 2021's 3,16,034 units. When September sales from the previous two years are compared to those from last month, 2022's record total represents an increase of 121% over September 2021's 1,60,070 units and a decrease of 30% over September 2020's 2,72,027 units.

Vinkesh Gulati, chairman of FADA India Research & Academy, tweeted: "Car dispatches to dealers crossed 3.5 lakh in September 2022," confirming the best-ever monthly sales. “The Passenger vehicles segment should have its best month ever this month! ”

The easing semiconductor supply chain issue, increased vehicle production, increased supplies to dealers as production ramps up, and strong customer demand because of the ongoing festive season are just a few of the growth-enhancing factors that have contributed to the record wholesale figures.

Maruti Suzuki India:

In September 2022, Maruti Suzuki reported total sales of 1,76,306 units, an increase of 104.1% YoY. Since September 2021 was negatively impacted by a shortage of electronic components, the sales are not YoY comparable. In September 2022, domestic sales increased by 125.1% YoY to 1,54,903 units, while export sales increased by 21.9% YoY to 21,403 units. The increase in domestic Passenger Vehicles sales was 135.1% YoY. Light Commercial vehicle sales fell by 24.2% YoY.

Total sales growth for H1FY23 was 34.4% YoY when taken as a whole. The growth in domestic sales for H1FY23 was 35.7% YoY, while the growth in export sales was 26.4% YoY. 

The domestic Passenger vehicles segment for Maruti Suzuki saw MoM growth of 10.6% for the month, indicating strong holiday demand. For the past three months, Maruti Suzuki's SUV sales have increased month over month, demonstrating that the company's efforts to increase its market share in the SUV segment through the introduction of new products are paying off.

Maruti Suzuki India is anticipated to perform well on the top line thanks to improvements in the supply of electronic components, continued demand traction in exports, and improvements in domestic demand. The profitability of Maruti Suzuki India will be aided by FX advantages, lower commodity costs, and overall operating leverage because of an increase in volumes.

Tata Motors Ltd:

In September 2022, Tata Motors sold 82,754 units overall, up 39.9% YoY. To reach 80,633 units, total domestic sales increased by 44.0% YoY. Domestic Passenger vehicle sales increased by 85.2% YoY to 47,654 units.

In September 2022 and Q2FY23, respectively, Tata Motors sold the most Passenger vehicles on the domestic market in terms of both monthly and quarterly sales. Domestic Passenger vehicles saw EV growth of 239.1% YoY compared to ICE-powered vehicle growth of 78.5% YoY.

In September 2022, domestic commercial vehicle sales increased 9.0% YoY to 32,979 units. The economic climate in Sri Lanka and Nepal had an impact on commercial vehicle exports, which fell by 36.3% to 1,911 units.

Tata Motors' total sales for H1FY23 increased cumulatively by 66.0% YoY compared to H1FY22. Domestic Passenger vehicle sales increased by 83.7% YoY in H1FY23, while domestic commercial vehicle sales increased by 55.8%.

Tata Motors is still profiting from the domestic commercial vehicles industry's recovery as a result of increased economic activity, better fleet utilization, and a pick-up in infrastructure development. The economy-related problems in Sri Lanka and Nepal are putting pressure on commercial vehicle exports. Tata Motors' Passenger vehicle sales are growing rapidly as a result of the company's recent product introductions and a higher proportion of SUVs in its lineup. Tata Motors' electric vehicle (EV) strategy is taking off, and the company is reporting steadily rising EV sales within the Passenger vehicles segment. Sales momentum should continue with an improving supply and the holiday shopping season.

Tata Motors is seeing good performance traction in the domestic Passenger vehicles and commercial vehicles businesses. Jaguar Land Rover's performance is expected to improve as production and supply-related issues clear out

Ashok Leyland Ltd:

In September 2022, Ashok Leyland reported total monthly sales of 17,549 units, an increase of 84.1% YoY. To 16,499 units, domestic sales increased by 87.8% YoY. Sales of exports increased to 1,050 units, up 40.8% YoY.

Sales of Medium and Heavy Commercial vehicles reached 11,314 units and increased by 123.6% YoY. Light Commercial vehicle sales for the month were 6,235 units, up 39.4% YoY.

Total sales increased by 86.6% YoY in H1FY23. In H1FY23, Medium and Heavy Commercial vehicles and Light Commercial vehicles sales increased by 134.1% and 39.9% YoY, respectively.

Due to favorable industry conditions for the commercial vehicles sector, Ashok Leyland is expanding rapidly. The total sales for September 2022 increased strongly MoM by 24.3%. New product introductions and a wider distribution network are examples of interventions that have benefited Ashok Leyland. Due to higher fleet utilization rates, increased economic activity, demand from the e-commerce industry, and the government's emphasis on infrastructure development, the commercial vehicles industry is poised for continued growth.

The commercial vehicles industry is experiencing strong growth, which is being supported by a low base, an increase in economic activity, higher fleet utilization rates, and demand from the agriculture and e-commerce sectors. In spite of having to raise prices, Ashok Leyland is expanding its market share. Ashok Leyland's profitability is anticipated to increase as commodity costs decline, helped by higher gross margins, higher volume, and operating leverage.

Bajaj Auto:

In September 2022, Bajaj Auto reported total monthly sales of 3,94,747 units, a 1.8% YoY decline. Sales of two-wheelers as a whole decreased 3.5% YoY to 3,48,355 units. While 2-wheeler exports fell by 33.0% YoY, domestic 2-wheeler sales increased by 28.2% YoY.

To reach 46,392 units, total commercial vehicle sales for the month increased by 13.2% YoY. For the month, domestic commercial vehicle sales increased by 72.5% YoY. Exports of commercial vehicles fell 35.2% YoY. The overall sales of Bajaj Auto decreased by 3.1% YoY in H1FY23. For H1FY23, 2-wheelers and commercial vehicles both experienced declines of 3.3% YoY and 1.2% YoY, respectively.

Bajaj Auto is experiencing growth in its domestic business YoY, but its exports are suffering as a result of problems in some regions, particularly in Africa. Since domestic 3-wheelers have been struggling since the pandemic, a strong MoM growth in the domestic commercial vehicles segment in September 2022 is encouraging. Future domestic 3-wheeler sales must be closely monitored for viability.

Due to supply-side problems, Bajaj Auto's product supply was falling short of customer demand. By integrating new supply chains, Bajaj Auto will be able to fill its inventory to normal levels and begin satisfying demand. The management is optimistic about the medium-term potential for exports.

Eicher Motors: 

In September 2022, Eicher Motors reported total sales of 88,728 units, an increase of 124.1% YoY. The total monthly sales of two-wheelers were 82,097 units, an increase of 144.9% YoY. In September 2022, domestic 2-wheeler sales increased by 170.4% YoY, whereas export 2-wheeler sales increased by 34.2% YoY.

To reach 6,631 units, Volvo Eicher commercial vehicles' overall sales increased by 9.2% YoY. In September 2022, domestic Volvo Eicher commercial vehicle sales increased by 14.7% YoY while exports fell by 35.8% YoY.

Eicher Motors saw a 59.9% YoY increase in 2-wheeler sales for H1FY23. Sales of all Volvo Eicher commercial vehicles increased overall in H1FY23 by 67.6% YoY.

Sales of two-wheelers increased significantly for Eicher Motors in September 2022, rising by 17.1% MoM. This suggests a significant demand at the beginning of the holiday season. Along with the general industry growth trend, Volvo Eicher commercial vehicle sales are also robust.

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Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

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