Auto Sales in January 2022: Demand weakness continues; Tata Motors shines brighter than peers

Auto Sales in January 2022: Demand weakness continues; Tata Motors shines brighter than peers

by 5paisa Research Team Last Updated: 2022-02-07T15:01:55+05:30

Sequential growth recorded in wholesale dispatches, but many OEMs are still far off from January 2021.

Automobile sales volumes continued to remain under pressure in January 2022, with subdued sales in two-wheeler (2W), passenger vehicle (PV) and tractor segments, although the commercial vehicle (CV) segment continued with a gradual recovery trend. On a sequential basis, industry volumes have shown growth as compared to December 2021 but figures are still way off as compared to January 2021. The sentiment however is improving with positive indicators the relaxing of COVID-19 restrictions, growing demand for electric vehicles and growth in exports.

Passenger Vehicles:

Market leader, Maruti Suzuki reported domestic sales in January 2022 at 128,924 units, which were down 7.25% YoY over the same period in 2021. Maruti Suzuki said that the shortage of electronic components had a minor impact on the production of vehicles that are primarily sold in the domestic market and that it took all possible measures to minimise the impact.

Meanwhile, Mahindra & Mahindra (M&M) reported domestic PV sales at 19,964 units in January 2022 as compared to 20,634 units in January 2021, down 3.25% YoY. The company sits on several pending orders specifically of the new XUV700 and Thar, with production delayed by the ongoing global semiconductor part shortage. Despite various global supply chain challenges, the company has fulfilled its commitment of billing the first 14000 XUV700s by January 2022 and have registered close to 1,00,000 bookings since launch, a major milestone in the Indian SUV Industry.

Tata Motors, which surprisingly grabbed the second position in December 2021 from Hyundai Motors, saw monthly sales of 40,777 units in the month of January 2022- its highest-ever monthly passenger vehicle sales, highest-ever SUV sales and highest-ever EV sales along with the Tata Nexon and Tata Punch both crossing the 10,000 sales mark. As compared to January 2021, the homegrown carmaker’s domestic volumes increased by 51.15%.

Domestic PV Sales   

Jan-22 

Jan-21 

% change   

 

 

Maruti Suzuki   

128,924 

139,002 

-7.25% 

 

 

Tata Motors   

40,777 

26,978 

51.15% 

 

 

Mahindra & Mahindra   

19,964 

20,634 

-3.25% 

 

 

Two-wheelers: 

The country’s largest two-wheeler maker, Hero MotoCorp reported disappointing domestic volumes which came in at a low 358,660 units in January, a fall of 23.33% as compared to the same period last year. The company said that the third wave of the pandemic, subsequent staggered state-wise lockdowns and restricted movement impacted the overall sales volume of the month. Meanwhile, its competitors - Bajaj Auto and TVS Motors saw declines of 13.92% and 18.23% in domestic sales for the month.

Royal Enfield domestic sales stood at 49,726 units, down by 22.75% YoY as compared to 64,372 units in January 2021.

Domestic 2-W Sales  

Jan-22 

Jan-21 

% change   

 

 

Hero MotoCorp  

358,660 

467,776 

-23.33% 

 

 

TVS Motor  

167,795 

205,216 

-18.23% 

 

 

Bajaj Auto  

135,496 

157,404 

-13.92% 

 

 

Royal Enfield 

49,726 

64,372 

-22.75% 

 

 

Commercial Vehicles (CV)

Mahindra and Mahindra commercial Vehicles registered growth across all segments and ended the month with an overall impressive growth of 47.75% in domestic CV sales while other players had a single-digit YoY growth. They have launched the ‘Highest Mileage or Give Truck Back’ guarantee on their entire HCV, ICV & LCV truck range, which has received a very positive response from the market.

Tata Motors, TVS Motors, Bajaj Auto and Ashok Leyland dispatched 31,708 units (up 3.38% YoY), 12,649 units (up 0.76% YoY), 14,160 units (up 6.04% YoY) and 12,709 units (up 2.83% YoY), respectively, in January 2022.

Domestic CV Sales  

Jan-22 

Jan-21 

% change   

 

 

Tata Motors  

31,708 

30,671 

3.38% 

 

 

TVS Motor  

12,649 

12,553 

0.76% 

 

 

Mahindra & Mahindra  

23,979 

16,229 

47.75% 

 

 

Bajaj Auto  

14,160 

13,353 

6.04% 

 

 

Ashok Leyland  

12,709 

12,359 

2.83% 

 

 

Tractors:

Tractor sales in January were disappointing with Escorts and M&M both reporting lower sales numbers on a YoY basis. M&M reported domestic tractor sales which stood at 21,162 units in January 2022 as compared to 33,562 units in January 2021, down 36.9%.

In the domestic market, Escorts sold 5,103 units in the month of January 2022, down 40% as compared to 8,510 units sold in January 2021. In the press release company has mentioned this decline is due to unseasonal rainfall in certain parts of the country, the high base of last year and inflationary impact on short term demand leading to a higher level of channel inventory in certain geographies. Going forward with improved liquidity in the hand of farmers, overall high rabi sowing and good water level reservoirs, they expect the same will help boost demand recovery in the coming months.

Domestic Tractor Sales  

Jan-22 

Jan-21 

% change   

 

 

Mahindra & Mahindra  

21,162 

33,562 

-36.95% 

 

 

Escorts 

5,103 

8,510 

-40.04% 

 

 

Also Read : Tata Motors, Maruti gain after November car sales data; TVS Motor skids


Start Investing in 5 mins*

Get Benefits worth 2100* | Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Open Free Demat Account

& get benefits worth 2100*

 
Resend OTP
Please Enter OTP
  • Have Promo code?
  • Use code ACT2100
Enter Promo code

By proceeding, you agree to the T&C.

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number