Auto Sales in March 2022: Early signs of demand recovery hindered by supply shortages; Tata Motors and M&M shine

Auto Sales in March 2022: Early signs of demand recovery hindered by supply shortages; Tata Motors and M&M shine

by 5paisa Research Team Last Updated: Dec 11, 2022 - 03:29 am 32.3k Views
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Shortage of semiconductor supply still remains a concern for many.

Automobile sales volumes continued to remain under pressure in March 2022, with subdued sales in two-wheeler (2W), although the commercial vehicle (CV) segment and tractor segment continued with a gradual recovery trend. Some companies have witnessed a strong revival in the passenger vehicle (PV) segment as well. However, the ongoing Russia-Ukrain war situation is a huge concern for Automotives as both countries are the main suppliers of auto inputs. On a sequential basis, industry volumes have shown growth as compared to February 2022 but figures are still way off as compared to March 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 March 2022 at 133,861 units, which were down 8.44% YoY over the same period in 2021. Maruti Suzuki said that the shortage of electronic components had some 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 27,603 units in March 2022 as compared to 29,654 units in March 2021, up by 65.29% 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 seen strong demand in the SUV segment. The XUV700 had been a great success for the company.

Tata Motors, which posted third-most sales of units after Maruti Suzuki and Hyundai, saw monthly sales of 42,293 units in the month of March 2022- its highest-ever monthly passenger vehicle sales, highest-ever SUV sales and highest-ever EV sales along with the Tata Nexon and Tata Tigor both witnessed rapid growth in demand. As compared to March 2021, the homegrown carmaker’s domestic volumes increased by 42.62%

Domestic PV Sales    



% change    





Maruti Suzuki    








Tata Motors    








Mahindra & Mahindra    









The country’s largest two-wheeler maker, Hero MotoCorp reported disappointing domestic volumes which came in at a low 358,660 units in March, 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 March 2021. 

Domestic 2-W Sales   



% change    





Hero MotoCorp   








TVS Motor   








Bajaj Auto   








Royal Enfield  








 Commercial Vehicles (CV):

Tata Motors Commercial Vehicles registered growth across all segments and ended the month with an overall impressive growth of 20.69% in domestic CV sales while other players too had decent growth. The company’s worst impacted CV segment is now showing early signs of recovery.

M&M, TVS Motors, Bajaj Auto and Ashok Leyland dispatched 23,880 units (up 10.67% YoY), 15,036 units (down 1.38% YoY), 19,671 units (up 14.65% YoY) and 18,556 units (up 17.73% YoY), respectively, in March 2022. 

Domestic CV Sales   



% change    





Tata Motors   








TVS Motor   








Mahindra & Mahindra   








Bajaj Auto   








Ashok Leyland   







Tractor sales in February were disappointing with Escorts and M&M both reporting lower sales numbers on a YoY basis. In March, the numbers are not as bad as they were expected. M&M reported domestic tractor sales which stood at 28,112 units in March 2022 as compared to 29,817 units in March 2021, down 5.72%.

In the domestic market, Escorts sold 9,483 units in the month of March 2022, down 19.16% as compared to 11,730 units sold in March 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 soft commercial demand. Going forward with higher rabi output, good water level reservoirs, increased union budget allocation to rural and agri sector and favourable crop prices, they expect the same will help boost demand recovery in coming months.

Domestic Tractor Sales   



% change    





Mahindra & Mahindra   















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