Passenger vehicle sales rise on improved chip supply

Improvement in semiconductor supplies helped automakers, including Maruti Suzuki, Hyundai, Tata Motors and Mahindra & Mahindra, report single to high double-digit growth on Monday in their domestic passenger vehicles sales in July.

Other manufacturers, Kia India, Toyota Kirloskar Motor (TKM), Honda Cars India, Skoda Auto India, also reported robust growth in their domestic passenger vehicle sales with the auto industry estimated to have achieved the highest-ever passenger vehicle wholesales in July this year.

Maruti Suzuki India said its domestic passenger vehicle sales rose 6.82% last month to 1,42,850 units.

“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models,” the company said in a statement.

The company’s sales were driven mainly by compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, which rose to 84,818 units in July 2022 from 70,268 units a year earlier.

Sales of mini cars — the Alto and the S-Presso — grew to 20,333 units from 19,685 units. However, sales of utility vehicles — including Brezza, Ertiga, S-Cross and XL6 — declined to 23,272 units from 32,272 units.

“Overall industry sales stood at over 3.42 lakh units last month as compared with 2.94 lakh units in July 2021. This is the highest wholesale figure we have ever seen in the industry,” MSI India senior director (Marketing and Sales) Shashank Srivastava told PTI.

The previous best wholesales stood at 3.34 lakh units in October 2020, he said, adding that it had been possible due to better production as the chip shortage had eased a bit.

The industry is expected to cross the 37-lakh unit sales mark this fiscal, which is would be the highest ever, he noted.

Another major player Hyundai Motor India said its domestic sales rose 5.1% to 50,500 units.

“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,” HMIL director (Sales, Marketing & Service) Tarun Garg said.

Tata Motors posted a 57% increase in domestic passenger vehicles sales to 47,505 units. The company’s passenger electric vehicle sales also rose to 4,022 units last month from 604 units in July 2021, the company said.

Similarly, Mahindra & Mahindra Ltd reported a 33% increase in domestic passenger vehicles sales to 28,053 units, driven by its utility vehicles.

M&M’s domestic utility vehicle sales during the month were at 27,854 units, as against 20,797 units in the year-ago month, up 34%, while sales of cars and vans were down 20% at 199 units, as compared with 249 units a year earlier.

“The supply-chain situation continues to remain dynamic, and we are monitoring the situation closely,” M&M president, Automotive Division, Veejay Nakra said.

Kia India also reported a 47% increase in its wholesales to 22,022 units in July.

Gradual improvement in the supply chain and continued demand for the brand is adding momentum to the company’s growth, Kia India Vice President & Head of Sales and Marketing Hardeep Singh Brar said.