Auto Sales in October 2021: Supply chain challenges continue to drag down production.

5paisa Research Team

Last Updated: 10th December 2022 - 05:22 pm

Several automakers witness double-digit declines on account of the global semi-conductor shortage.

Significant challenges on the supply side, including semi-conductor issues and sharp commodity inflation, continue to plague the automobile industry, which is now grappling with plummeting production. This is mainly the case with car sales in India but even two-wheeler sales took a hit ahead of the festive season as witnessed in the October 2021 sales numbers.

Passenger Vehicles:

The domestic sales for India's largest carmaker, Maruti Suzuki India fell 33.40% on a YoY basis to 1,08,991 units in October. The Gurugram-based automaker said the shortage of electronic components continued to affect production during the month. Mahindra and Mahindra (M&M) reported domestic sales of 20,130 units during the month, registering an increase in total sales of 8.10% on a YoY basis. The company has noted an unprecedented response for its recently launched XUV 700.

On the other hand, Tata Motors was the standout name in the passenger vehicle space once again and reported a YoY domestic sales growth of 43.65 per cent in October 2021 to 33,925 units as compared to 23,617 units last year. For Tata, cars like Altroz, Nexon and Tiago have been registering consistent sales volumes. The newly launched Punch micro SUV is expected to drive sales volumes in the months ahead. These sales figures have led to a significant increase in market share with the company reporting a 13.7% market share last month - its highest in over a decade. This was against the 7.4% share held in October 2020.

Domestic PV Sales	October 2021	October 2020	% change

Maruti Suzuki	108,991	163,656	-33.40%

Tata Motors	33,925	23,617	43.65%

Mahindra & Mahindra	20,130	18,622	8.10%

Two-wheelers:

The country’s largest two-wheeler maker, Hero Motocorp reported a 33.29% dip in domestic sales to 527,779 units in October 2021 as compared to 791,137 units in the same month last year. The company expects healthy retail over the coming weeks with demand in the festive season building up towards Dhanteras and Diwali.

Other two-wheeler names, notably TVS Motors and Bajaj Auto reported YoY declines in domestic sales of 14.14% and 26.02% respectively. Meanwhile, Royal Enfield a part of Eicher Motors reported a 35.39% drop in domestic sales to 40,611 units in October. While total sales of its motorcycle models with engine capacity up to 350cc fell by 38% to 37,409 units, sales of motorcycle models with engine capacity exceeding 350cc rose by 5% to 6,724 units in October 2021 over October 2020.

Domestic 2-W Sales	October 2021	October 2020	% change

Hero MotoCorp	527,779	791,137	-33.29%

TVS Motor	258,777	301,380	-14.14%

Bajaj Auto	198,738	268,631	-26.02%

Royal Enfield	40,611	62,858	-35.39%

Commercial Vehicles (CV):

Companies in the Commercial Vehicle (CV) space saw sales mostly in the green apart from Mahindra & Mahindra which recorded a 21.56% drop in domestic sales to 18,604 units in October 2021 from 23,716 units in October 2020.

Hinduja Group flagship Ashok Leyland’s domestic sales of medium and heavy commercial vehicles were at 5,254 units as against 3,881 units in October 2020, a growth of 35%. However, sales of light commercial vehicles in the domestic market were down 4% at 4,789 units last month as against 5,004 units in October 2020. Total domestic sales were higher by 13.03%.

Domestic CV Sales	October 2021	October 2020	% change

Tata Motors	31,226	26,052	19.86%

TVS Motor	13,520	12,603	7.28%

Mahindra & Mahindra	18,604	23,716	-21.56%

Bajaj Auto	19,827	12,529	58.25%

Ashok Leyland	10,043	8,885	13.03%

Tractors:

Mahindra & Mahindra and Escorts both recorded declines in domestic sales of 0.37% and 3.27% respectively in October 2021 on a YoY basis. This was due to heavy rainfall in September and October has resulted in delayed harvesting of Kharif crop, while leading to higher reservoir levels and moisture content for Rabi crop.

However, the Escorts management sounded upbeat that the ensuing festive season, strong farmer sentiment, rising enquiry level driven by favourable macroeconomic factors, reasonable water level at reservoirs, and the healthy pace of Kharif sowing, will give a fillip to the segment.

Domestic Tractor Sales	October 2021	October 2020	% change

Mahindra & Mahindra	45,420	45,588	-0.37%

Escorts	12,749	13,180	-3.27%

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