Auto Sales in June 2022: Improvement witnessed in passenger vehicles and commercial vehicles, two-wheelers and tractors face problem!
5paisa Research Team
Last Updated: 11th December 2022 - 02:49 pm
Gradual improvement in rural demand is expected to boost 2-wheeler sales in next 3-4 months
Automobile sales volumes are showing gradual recovery. Passenger vehicles (PV) and commercial vehicles (CV) segments have witnessed good traction in June 2022. Also, most of the auto companies have performed well when compared to the sales of April 2022. The tractor segment and 2-wheeler segment reported declining sales. The semiconductor issue is still serious, and the shortage of other equipment as well as harming the sector. The sentiment however is improving with positive indicators of the relaxing of COVID-19 restrictions, growing demand for electric vehicles and growth in CVs and PVs.
Passenger Vehicles:
Market leader, Maruti Suzuki reported domestic sales in June 2022 at 122,685 units, which were down 1.28% 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 it observed an annual maintenance shutdown in June 2022.
Meanwhile, Mahindra & Mahindra (M&M) reported domestic PV sales at 26,880 units in June 2022 as compared to 16,913 units in June 2021, up 87.46% YoY. The company is witnessing strong traction in demand with all its brands performing well including XUV700, Bolero, XUV 300 and Thar. It is witnessing strong bookings and has a robust pipeline. It announced the launch of Scorpio-N, which is generating very high interest levels and promises to be yet another blockbuster from Mahindra. It was awarded the coveted Global NCAP ‘Safer Choice’ Award for being the safest car in India. This accolade is only available to automakers achieving the highest levels of safety for vehicles sold in India.
Tata Motors has become one of the favourites in auto sector as it saw monthly sales of 45,197 units in the month of June 2022. The sales have improved on a month-on-month basis and the EV cars are witnessing strong order pipeline. As compared to June 2021, the homegrown carmaker’s domestic volumes increased by 58.93%.
|
Domestic PV Sales |
Jun-22 |
Jun-21 |
% change |
|
|
|
||||
|
1,22,685 |
1,24,280 |
-1.28% |
|
|
|
|
||||
|
45,197 |
24,110 |
87.46% |
|
|
|
|
||||
|
26,880 |
16,913 |
58.93% |
|
|
|
|
Two-wheelers:
The country’s largest two-wheeler maker, Hero MotoCorp reported positive domestic volumes which came in at 4,63,210 units in June 2022, an increase of 5.63% as compared to the same period last year. Its sales have grown 3.3% against May 2022 sales. The company said that the growth in volumes indicate the continuously improving consumer sentiment and the company expects the positive trend to continue in the coming months, on the back of a decent monsoon, and encouraging farm activity.
Meanwhile, its competitors - Bajaj Auto and TVS Motors saw decrease of 19.63% and increase of 32.79%, respectively in domestic sales for the month. Royal Enfield domestic sales stood at 50,265 units, up by 40.35% YoY as compared to 35,815 units in June 2021.
|
Domestic 2-W Sales |
Jun-22 |
Jun-21 |
% change |
|
|
|
||||
|
4,63,210 |
4,38,514 |
5.63% |
|
|
|
|
||||
|
1,93,090 |
1,45,413 |
32.79% |
|
|
|
|
||||
|
Bajaj Auto |
1,25,083 |
1,55,640 |
-19.63% |
|
|
|
||||
|
Royal Enfield |
50,265 |
35,815 |
40.35% |
|
|
|
Commercial Vehicles (CV):
Tata Motors Commercial Vehicles registered growth across all segments and ended the month with an overall impressive growth of 75.61% in domestic CV sales while other players too witnessed strong YoY growth. Bajaj Auto’s CV segment witnessed the highest growth of 323.79%.
Mahindra & Mahindra, TVS Motors and Ashok Leyland dispatched 24,439 units (up 81.78% YoY), 14,786 units (up 7% YoY), and 13,469 units (up 130.20% YoY), respectively, in June 2022.
|
Domestic CV Sales |
Jun-22 |
Jun-21 |
% change |
|
|
|
||||
|
34,409 |
19,594 |
75.61% |
|
|
|
|
||||
|
14,786 |
13,794 |
7% |
|
|
|
|
||||
|
24,439 |
13,444 |
81.78% |
|
|
|
|
||||
|
Bajaj Auto |
13,268 |
6,196 |
114.14% |
|
|
|
||||
|
13,469 |
5,851 |
130.20% |
|
|
|
|
Tractors:
Tractor sales in June remained muted on a YoY basis as both Escorts and M&M both reported lower sales numbers on a YoY basis although they posted growth on monthly basis. M&M reported domestic tractor sales which stood at 39,825 units in June 2022 compared to 46,875 units in June 2021, down by 15.04%. Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra said, “With good prices for Rabi output, cash flow with farmers is good. Government’s approval of an increase in MSP for all Kharif crops and forecast of a normal monsoon is very positive for a bumper Kharif crop.”
In the domestic market, Escorts sold 9,265 units in the month of June 2022, down 22.51% as compared to 11,956 units sold in June 2021. In the press release company has mentioned that the industry wholesales were impacted during month of June 2022 due to high base of last year. With onset of monsoon, and likely record kharif crop production, rural liquidity and farmer sentiments are expected to gradually improve.
|
Domestic Tractor Sales |
Jun-22 |
Jun-21 |
% change |
|
|
|
||||
|
39,825 |
46,875 |
-15.04% |
|
|
|
|
||||
|
9,265 |
11,956 |
-22.51% |
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