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Auto Sales in August 2022: Buoyed by festive season, vehicle dispatches grow across segments

Sept 02, 2022

August acts as a threshold of surge in auto sales compared to the same period during the previous year which was marred by chip shortages. With the better economic scenario, excitement of new product launches and the waning of supply side constraints now, vehicle dispatches in the month grew across segments. With more festivals to come in September and October, the industry is betting on good consumer demand and sales volumes.

New Delhi: August brings a sense of joy across the country, as it is also synonymous with the beginning of the festive season across the states of India.

In August 2021, the country was slowly moving out of the COVID-induced lockdown challenges, but the vehicle demand-supply balance was unequal. The long-standing semiconductor shortages were severely impacting the production schedules.

One year later, the industry has seen the supply side constraints waning gradually and production levels improving. August 2022 also observed occasions like Raksha Bandhan, Janmashtami, Hartalika Teej and Ganesh Chaturthi. In order to create excitement among the consumers, most OEMs are also focused on launching new models, vehicle facelifts, or introducing special editions of the existing lineup during this time.

Going forward, September brings Onam and Navratri. In October, India will celebrate Durga Puja, Dussehra, Dhanteras, Diwali, and Bhai Dooj. With the anticipation of festive season sales, which accounts for about 40% of the industry's overall volumes, OEMs are likely to build up inventory at the dealerships in the upcoming months.

The following is a segment-wise report of vehicle dispatches to dealers during August 2022.

Passenger Vehicles

Most OEMs witnessed a growth in year-on-year sales, however on a sequential basis, the top three carmakers reported a decline.

Domestic sales for car market leader Maruti Suzuki India were up 30% to 1.34 lakh units over the corresponding period of last year. On a sequential basis, its sales were down from 1.42 units in July 2022.

The company reported a year-on-year growth for its mini (Alto, S-Presso) and compact (Baleno, Celerio, Dzire, Ignis, Swift, Tour S, WagonR) car categories. Sales for its utility vehicles (Brezza, Ertiga, S-Cross, XL6) and Eeco van was also up, however mid-size Ciaz witnessed a decline in domestic sales compared to August 2021.

“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models,” the maker of Alto and WagonR said.

In July 2022, Hyundai recorded 50,500 unit sales in the domestic market. In August this year, sales stood at 49,510 units.

However, Tarun Garg, Director (Sales, Marketing and Service), Hyundai Motor India, said, "With the continuously improving semiconductor situation, supplies continue to go up enabling us to serve our customers with their car in the festival season that has kicked off in India with Ganesh Chaturthi and Onam.”

Tata Motors reported sales of 47,166 units during the month, including 43,321 units of ICE vehicles and 3,845 EVs. On a month-on-month basis, the maker of Nexon reported a decline both for its ICE and EV sales. In July 2022, the carmaker had crossed the 4,000-mark for its electric car sales.

Mahindra & Mahindra (M&M) and Kia India reported a growth in domestic wholesales, when compared to August 2021 and July 2022.

Veejay Nakra, President, Automotive Division, M&M, said, “August was very exciting with launches across many segments for us. We registered the highest ever SUV volume of 29,516 in August, registering a growth of 87% over August 2021. The supply chain situation continues to remain dynamic for select product lines and we are taking appropriate actions to minimize impact.”

Kia, which has marked its position in the Top 5 carmakers in the country, said its Seltos led the monthly sales with 8,652 units, followed by Sonet at 7,838 units, Carens at 5,558 units and Carnival at 274 units, respectively.

Hardeep Singh Brar, Vice President and Head of Sales & Marketing, Kia India, said, "We have been observing upward sales momentum since the beginning of this year, and it is a good sign for the Indian automotive market.”

“Comparing the quarters, our monthly average so far for Q3 of 2022 stands at 7.8% over Q2 and 10.9% over Q1 of this year, indicating gradual improvement in supply chain constraints and healthy consumer sentiment. With the demand and supply curve staying positive, we are optimistic that an excellent festive season in terms of sales is ahead of us,” he said.

Meanwhile, carmakers like Maruti Suzuki and Toyota Kirloskar Motor are set to launch their Grand Vitara and Hyryder SUVs respectively during this festive season. Hyundai will be introducing Venue N-Line this week. Mahindra has already brought the Scorpio-N and the Scorpio Classic, Kia has launched a new trim of its Sonet SUV and MG has brought an upgraded Gloster. Tata Motors and Renault have introduced special edition models to create excitement in the market.

Domestic Sales	August 2022	August 2021	% change
Maruti Suzuki	1,34,166	1,03,187	30
Hyundai	49,510	46,866	6
Tata Motors	47,166	28,018	68
Mahindra & Mahindra	29,852	15,973	87
Kia India	22,322	16,759	33
Toyota Kirloskar	14,959	12,772	17
Honda Cars	7,769	11,177	-30
Renault	7,012	9,703	-28
Skoda Auto	4,222	3,829	10
MG Motor	3,823	4,315	-11
Nissan India	3,283	3,209	2
Volkswagen	2,057	1,631	26

Yuichi Murata, Director- Marketing and Sales, Honda Cars India, said, "The demand momentum continues to be strong, which is very encouraging and positive for the auto industry as we enter the festive season.”

However, Honda said that on the supply side it continues to face hurdles arising out of global chip shortage, which is affecting production volumes and resulting in extended waiting periods for models.

Czech carmaker Skoda Auto said that in its over 20 year legacy in India, it has sold the largest number of cars in 2022, touching 37,568 total sales, with more than a quarter yet to go. The previous best by the company was 34,678 units sold in 2012.

Klaus Zellmer, CEO, Skoda Auto, said, “We have recorded our biggest year ever in India within the first eight months of 2022. These outstanding results have enabled India to rank among the top three markets for Skoda Auto globally in the first half of this year. A big contribution to fulfilling our global ambitions is coming from India. We are well on track to more than double our sales in 2022 over last year.”

Source - auto.economictimes.indiatimes.com

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