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Despite chip shortage, automakers see robust sales

Source: PTI
June 01, 2022 19:42 IST
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Leading carmakers Maruti Suzuki, Hyundai and Tata Motors reported robust dispatches to dealers in May on the back of strong demand for passenger vehicles across regions, even as the global semiconductor shortage continued to impact production.

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Photograph: Adnan Abidi/Reuters

Mahindra & Mahindra, Kia India, Toyota Kirloskar Motor, Honda Cars and Skoda also witnessed strong demand for their models last month.

The month of May also witnessed Tata Motors race ahead of Hyundai in terms of domestic wholesales.

 

The country's largest carmaker Maruti Suzuki India (MSI) said its domestic sales stood at 134,222 units in May.

The company had dispatched just 35,293 units in May 2021 amid the second wave of COVID-19 pandemic in the country.

The period saw massive disruptions which impacted both production and sale of cars.

"The basic parameters of demand in terms of enquiries, bookings remain robust. However, supply chain issues remain and there is no clear visibility by when things will normalise," MSI senior executive director (marketing and sales) Shashank Srivastava told PTI.

Elaborating on the market scenario, he noted that the passenger vehicle industry, which had shrunk to 1.03 lakh units last May, has rebounded to 2.94 lakh units in May this year.

"The April-May numbers are at about 5.88 lakh unit mark for the industry as compared with 3.9 lakh units last year...first quarter should touch 9 lakh units which is a good indication for the industry," Srivastava stated.

Last month, sales of the company's mini cars, comprising Alto and S-Presso, jumped to 17,408 units, compared to 4,760 in May 2021.

The company said sales in the compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, was at 67,947 units in May this year. In the corresponding period last year it was at 20,343 units.

Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, was at 28,051 units, while in the year-ago month it was 6,355 vehicles, MSI said.

"The sales figures of May 2022 are not comparable with that of May 2021 as the operations of the company in May 2021 were significantly affected due to COVID-19 related disruptions," the automaker stated.

Taking the second spot in terms of domestic dispatches last month, Tata Motors reported passenger vehicle wholesales of 43,341 units.

This is the company's highest-ever monthly sales since inception -- PV and EV domestic combined -- led by robust dispatch of Nexon, Harrier and Safari.

The automajor also reported the highest-ever dispatches of electric vehicles (EVs) last month at 3,454 units, up from 476 units in the same period last year.

Hyundai Motor India said its domestic wholesales stood at 42,293 units in May 2022.

Both company plants in Chennai observed the scheduled biannual maintenance shutdown, leading to no production for six days in the month (May 16-21), the automaker noted.

This reduced the vehicle availability in the month, thus affecting May sales numbers (both domestic as well as exports), it added.

"Starting June 2022, production will be enhanced to cater to the high demand for domestic and export markets ensuring timely deliveries of long waiting customers," the company stated.

Mahindra & Mahindra said its domestic passenger vehicle sales stood at 26,904 units last month.

"With sales of 26,632 SUVs in May, we continued the growth momentum with all our brands performing well, including XUV700 and Thar," M&M president (automotive division) Veejay Nakra said.

The company is witnessing strong bookings and has a robust pipeline, he added.

The automaker is closely monitoring the supply chain related issues, which continue to constraint volumes and is taking appropriate actions to mitigate the impact, Nakra noted.

Kia India reported sales of 18,718 units in May. It had dispatched 11,050 units to dealers amid the second wave of COVID-19 in May 2021.

Similarly, Toyota Kirloskar Motor (TKM) said its wholesales stood at 10,216 units in May.

The company had dispatched just 707 units to dealerships in May 2021.

"Demand continues to peak as we have very encouraging booking orders and enquiries for all our models," TKM associate vice president (sales, and strategic marketing) Atul Sood said.

Honda Cars India said its domestic sales last month stood at 8,188 units.

"The demand for Honda cars continued to stay strong as positive sentiments prevailed in the market but the prolonged supply chain-related issues still remain a hindrance and we are making all efforts to cater to the demand effectively," Honda Cars India director (marketing and sales) Yuichi Murata noted.

Skoda Auto India said its wholesales stood at 4,604 units in May.

The company had sold 716 units in the COVID-hit May last year.

MG Motor India said its retail sales stood at 4,008 units in May.

It had sold 1,016 units in the same month last year.

In the two-wheeler segment, Bajaj Auto reported total domestic sales of 112,308 units.

It had dispatched 60,830 units in May 2021.

Similarly, TVS Motor Company said its domestic two-wheeler sales stood at 191,482 units last month, compared to 52,084 units in May 2021.

The semiconductor shortage has impacted the production and sales of premium two-wheelers, the company said.

"We are working aggressively with alternate sources and taking every effort to improve supplies at the earliest...We are optimistic that volumes will revive to normal levels once the semiconductor supplies improve," it added.

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