Auto sales boom as chip shortage eases off: Maruti Suzuki, Mahindra & TVS sales see new highs

As the chip shortage finally loosens its grip on the Indian automotive industry, sales of brands like Maruti Suzuki, Hyundai, Mahindra, TVS and more head northwards.

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With the festive season right around the corner, the Indian automotive industry is witnessing a high demand for private two-wheelers and four-wheelers. Car brands like the Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Kia have reported a strong hike in their monthly vehicle dispatch for the domestic market for August as the festive season nears and chip shortage eases its grip on the industry. Other brands like Hyundai and Skoda also posted positive numbers for the last month. Talking of two-wheeler companies, Bajaj and TVS recorded a YoY hike of 49 per cent and 33 per cent, respectively, for the month of August this year.

The country's largest automaker Maruti Suzuki India said its domestic passenger vehicle dispatches increased by 30 per cent to 1,34,166 units in August as compared with 1,03,187 units in the year-ago month.

Sales of mini segment cars, comprising Alto and S-Presso, grew to 22,162 units as against 20,461 units in August 2021.

Similarly, dispatch of compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR, to dealers rose by 57 per cent to 71,557 units as compared to 45,577 units in the year-ago month.

Utility vehicles, consisting of Brezza, Ertiga, S-Cross and XL6, clocked sales of 26,932 units last month as compared to 24,337 units earlier.

Speaking to PTI on August numbers, MSI Senior Executive Director (Sales and Marketing) Shashank Srivastava said that coming on top of July's record numbers of 3.42 lakh units and two consecutive quarters of 9 lakh plus units for the industry, it appears that demand continues to be strong and there is a recovery as far as production is concerned.

"In the last three months, the figure is 9.92 lakh units which is the highest number so far seen in the industry. So, it appears that the demand continues to be strong and the supply is also improving," he stated.

He, however, cautioned about the buildup of some inventory in the marketplace on account of retail sales being on the lower side than the dispatches to dealerships.

Srivastava stated that going into the festive period, Maruti Suzuki was sitting on an order backlog of 3.77 lakh units.

"If we look at the entire industry, the pending orders should be in the range of 7-7.5 lakh units. Now how the production gets ramped up would determine how well the industry performs," he said.

Hyundai Motor India reported a 6 per cent increase in its domestic wholesales at 49,510 units against 46,866 units in August 2021.

On the other hand, Tata Motors saw its passenger vehicle wholesales in the domestic market increasing by 68 per cent to 47,166 units last month, as against 28,018 units in August 2021.

Mahindra & Mahindra (M&M) reported an 87 per cent year-on-year jump in domestic passenger vehicles sales at 29,852 units in August.

M&M President, Automotive Division Veejay Nakra said the demand across the company's portfolio remained strong and new launches such as Scorpio-N, Scorpio Classic and new Bolero MaXX Pik-up also helped drive growth.

Similarly, Kia India said its dispatches to dealers increased by 33 per cent to 22,322 units last month as compared to 16,759 units in August 2021.

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

Toyota Kirloskar Motor (TKM) reported a 17 per cent increase in total wholesales at 14,959 units for August. The automaker had dispatched 12,772 units to its dealers in August 2021.

Skoda Auto India also reported a 10 per cent increase in its wholesales at 4,222 units in August as compared with 3,829 units in August 2021.

In the two wheeler space, Bajaj Auto reported a 49 per cent increase in domestic wholesales at 2,56,755 units last month from 1,72,595 units in August 2021.

TVS Motor Company said its domestic two-wheeler sales stood at 2,39,325 units last month as compared with 1,79,999 units in the year-ago month, a growth of 33 per cent.

With inputs from PTI