Auto sector recovery continues as Nov sees record sales

Amid a continuous recovery and posting record sales, the auto companies sold 2,76,231 units of passenger vehicles in November 2022, a growth of 28.1% as compared to 2,15,626 units sold in the same month last year, thanks to festive fervour and strong demand despite supply-chain challenges, the latest data shared by the industry body Society of Indian Automobile Manufacturers (SIAM) shows. The growth comes out to be around 32% if 46,425 units sold by Tata Motors -- that does not report sales to SIAM-- are included. 

Two-wheeler sales were 12,36,190 units in November 2022, up 16.5% from 10,61,493 units sold in the year-ago period. Around 45,664 units of three-wheelers were sold in November 2022, more than double from 22,551 units sold in November 2021.

With this, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles in November 2022 was 20,42,575 units, up from 17,06,880 units produced in November last year. In terms of sales, 15,58,145 vehicles were sold in November, up from 12,99,716 in the year-ago period.

The production of PVs, three-wheelers, two-wheelers and quadricycles in April-November 2022 stands at 1,74,04,800 units, of which 1,40,13,283 units have been sold in the domestic market. Exports in this period stand at 33,79,556, witnessing a decline from 36,91,656 in the same period last year. Exports have seen a decline in all the categories -- three-wheelers, two-wheelers and quadricycles -- except PVs. From April-November 2022, auto companies exported 4.2 lakh PVs, up from 3.68 lakh exported during the same period last year, SIAM data shows.

The retail sale data released by the Federation of Automobile Dealers Association (FADA) last week also shows the retail sales for PVs growing by 25.71% year-on-year (YoY) to 23,80,465 units. In November, the two-wheeler PV retail sales were up 24% YoY to 18,47,708 units, with Hero Motocorp Ltd leading the chart at 34.42% market share. It sold 6,36,064 units during the month, followed by Honda with a 25.01% market share. TVS Motor Company, with the third-largest 14.64% market share, sold 2,70,551 units. 

In the PV segment, Maruti Suzuki grabbed the largest market share at 41.01%. It sold 1,23,409 units, followed by Hyundai with 14.91% market share and sold 44,859 units. Tata Motors, with the third-largest market share at 13.53%, sold 40,723 units. In the commercial vehicle segment, Tata Motors held the largest market share of 38.15% and sold 30,282 units, followed by Mahindra & Mahindra, with a 25.30% market share and sold 20,081 units.

November 2022 clocked the highest retails in the history of the Indian Automobile Industry with March’20 as an exception when retails were higher due to BS-4 to BS-6 transition. This came after the positive run of festive sales, followed by the Great Indian Wedding Season (from 14th November to 14th December), where around 32 lakh weddings were solemnised across the country.

According to Maruti Suzuki chairman R.C. Bhargava, the Indian automobile industry has reached a stage, at least this year, where it will surpass the figures of FY19, which was the year when it recorded its highest numbers. He said this while announcing 2nd quarter results. One of the biggest factors behind record sales is consumer behaviour as they seem to be on a spending spree. Another reason PV sales did not dip in spite of higher prices and interest rates is a perceptible shift towards pricier utility vehicles, which include SUVs and MPVs.