August 3, 2022
2 mins read

India’s auto industry rebounds

The commercial vehicle’s sector maintained robust growth momentum, driven by strong demand in both passenger and cargo segments, said Emkay Global Financial Services…reports Asian Lite News

The Indian automobile industry has posted robust growth last month with passenger/commercial vehicles and two-wheelers logging growth while the tractor segment lagged behind.

Passenger car majors clocked total sales of over 3.43 lakh last month as compared to July last year.

The commercial vehicle’s sector maintained robust growth momentum, driven by strong demand in both passenger and cargo segments, said Emkay Global Financial Services.

Similarly, the passenger and two-wheelers makers also showed growth owing to higher production and inventory build up with dealers in the run-up to festive season, Emkay Global said.

In comparison, tractor volumes declined notably due to a high base and uneven spread of the monsoon season.

“We expect the industry volume to improve gradually every month over the next 3-4 months backed festival season kicking in now,” Mitul Shah, Head of Research at Reliance Securities said in a report.

According to Shah, the softening commodity prices and stable fuel prices would support industry ahead and the sector to log double digit growth in FY23.

Car industry leader Maruti Suzuki India Ltd closed July, selling 175,916 units (domestic 145,666 units, sales to other vehicle maker 9,939 units, exports 20,311 units) as against July 2021 numbers of 162,462 units (domestic 133,732 units, OEM sales 4,738 units, exports 21,224 units).

The second largest car maker, Hyundai Motor India Ltd, registered 63,851 units (domestic 50,500 units, exports 13,351 units) last month as against 60,249 units (domestic 48,042 units, exports 12, 207 units) in July 2021.

Tarun Garg, Director, Sales, Marketing & Service, Hyundai Motor India: “With the improvement in the semiconductor situation, the passenger vehicle segment is showing positive trends riding on the green shoots of pent-up demand and customer desire towards personal mobility.”

Tata Motors Ltd said it sold 47,505 units (internal combustion engine (ICE) vehicles 43,483 units, electric vehicles 4,022 units) last month as against 30,185 units (ICE 29,581 units, EV 604 units) sold in July 2021.

On its part, Honda Cars India Ltd logged total sales of 8,888 units (domestic 6,784 units, exports 2,104 units) last month, up from 6,973 units (domestic 6,055 units, exports 918 units) sold in July 2021.

Yuichi Murata, Director, Marketing and Sales, Honda Cars India Ltd said: “Unfortunately, the ongoing chip shortage continues to impact and slowdown our supplies. We are diligently aligning our production to meet the demand as quickly as possible.”

Mahindra & Mahindra Ltd sold 28,053 passenger vehicles last month that includes utility vehicles, cars and vans up from 21,046 units sold during the previous year corresponding period.

Nissan Motor India said it registered domestic wholesale of 3,667 units and export wholesales of 4,670 units, cumulative wholesales of 8,337 units for the month of July 2022 logging 14 per cent sales growth.

Toyota Kirloskar Motors sold 19,693 cars last month up from 13,105 units sold in July 2021.

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