The demand in the auto sector has been spurred by the rising need for personal mode of travel over shared mobility or public transportation. This sector in spite of being faced by severe constraints over the past year, has posted double digit growth in Dec ’20 and this positive trend has continued in the New Year, also aided by the positive sales of passenger vehicle segment. Sales in Jan ’21 was at 3, 03,904 units, up 16% y-o-y against 2, 62,226 units sold in Jan ’20 and higher by 10% m-o-m at 3, 03,904 units compared to 2, 75,858 units sold in Dec ’20.
Maruti Suzuki India Limited (MSIL)-India’s largest automaker, reported a marginal dip of 1.24% m-o-m and 0.6% y-o-y sales at 1, 39,002 units last month as compared to 1,39,844 units in Jan ’20. However, the company has seen demand rising with increased sales in the utility vehicle (UV) segment.
Hyundai Motor India Limited (HMIL) witnessed more positive sales in Jan ’21 at 52,005 units, up 10% m-o-m against 47,400 units sold in Dec ’20 and up 24% compared to 42,002 units sold in Jan ’20. The company expects to boost sales in the months ahead with new cars being planned among which are the new versions of the Creta and SUV.
Tata Motors Limited wholesales stood at 26,980 units in Jan ’21, 94% y-o-y growth against 13,893 units sold in Jan ’20 while the sales in Dec ’20 stood at 23,546 units, up 15% m-o-m. Early last month, the company also increased prices up to INR 26,000 across segments. However, all customers that had placed bookings on or prior to 21st Jan ’21 would be exempted from this hike.
Mahindra & Mahindra Limited posted an increase in wholesales in the past month which stood at 20,498 units, up 5% y-o-y against 19,555 units in Jan ’20. However, the company reported a higher percentage increase by 28% m-o-m compared to 16,050 units sold in Dec ’20. Currently, Mahindra is facing shortage of micro-processor semiconductors and is working with suppliers to speed up supplies to meet the market demand.
Kia Motors India has climbed the sales charts with sales volumes reported at 19,056 units in Jan ’21, up 23% y-o-y against 15,450 units sold in Jan ’20 and an increase of 61% over Dec ’20 sales of 11,818 units.
Honda Motor Company Limited (HMCL), has posted sales at 11,320 units in the past month, a significant 114% y-o-y increase against 5,299 units in Jan ’20 while the sales in Dec ’20 stood at 8,638 units, up 31% m-o-m.
Toyota Kirloskar Motor Pvt. Ltd., the Japanese automaker also notched a higher y-o-y sales pitch, up 92% at 11,126 units in Jan ’21 compared to 5,804 units sold in the same month of the previous year. Meanwhile, m-o-m sales increased 48% as sales had stood at 7,493 units in Dec ’20.
Renault has posted a 16% m-o-m de-growth at 8,209 units in Jan ’21 against 9,800 units in Dec ’20 while the sales stood at 7,805 units in Jan ’20, up 5% y-o-y last month.
Nissan Motor Company Limited, has seen a surge in demand in the domestic market where it had been facing several constraints earlier. Sales in Jan ’21 increased to 4,527 units, up 220% against 1,413 units sold in Jan ’20. Launch of the new Magnite witnessed sales surge to 571% m-o-m against 599 units sold in Dec ’20.
Ford India has also noted a significant m-o-m increase in sales by 149% to 4,141 units in Jan ’21 as against 1,662 units sold in Dec ’20. Like Mahindra, Ford is also hit by shortage of semi-conductors and this caused the company to shut down its plants till supplies are regularized.
MG Motor India, has registered sales at 3,602 units in Jan ’21, up 15% y-o-y against 3,130 units sold in the same month of last year. However, when compared to sales in Dec ’20, the company suffered de-growth of 10% m-o-m at 4,010 units.
Outlook
As per the market analysts and auto industry experts, growth in the domestic passenger vehicle market could outpace all previous records in 2021-22, citing a very low base after two years of double-digit decline and sustained pent-up demand. New product launches, quick economic recovery and the upside of Covid-19 vaccines will most likely drive buyers back to showrooms, creating a sustained demand for personal mobility.
Indian auto sector to be amongst the fastest-growing markets, may post 30% growth in 2021 on low base, as sales might touch 3.2 million units pa touching 2018 levels.
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