India reported total sales of 2.1mn units including all vehicular segments including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, sold by major auto manufacturers in India. Total sales are up 83pc from the prior year.
Tata Motors, Ashok Leyland and Mahindra & Mahindra reported the biggest jump with the growth of over six to eight folds compared to the previous year. Most other manufacturers reported a growth of over 50pc. Sales in March 2020 was very weak amid a nationwide lockdown announced towards the end of the month. Auto sales in India rose by 13pc in February from a year ago. Most companies posted a double-digit growth compared to 2019.
All vehicular segments posted growth. Demand was strong in March despite increasing COVID-19 cases. Maruti Suzuki reported growth of 100pc, selling 167,014 units. March sales is close to 2019 levels, said the company.
Tata Motor’s commercial vehicle sales are growing steadily, said the company release. Improved consumer sentiments and firming freight rates coupled with infrastructure demand, which includes road construction and mining sectors. Tata Motors’ sold a total of 66,609 units in March, up by 505pc from the prior year.
|India auto sales in March|
|Company||March, 2021||March, 2020||Pc Change YoY|
|Eicher Motors (Royal Enfield)||66,058||35,814||84%|
|Eicher Motor heavy vehicles||7,037||1,499||369%|
|Mahindra & Mahindra auto||40,403||6,679||505%|
|Mahindra & Mahindra farm equipment sector||30,970||13,613||128%|
Mahindra’s management said that demand momentum is good and the company reported a strong pipeline of bookings across their SUV range. The company’s farm segment delivered a strong performance on the back of strong demand and a lower base year. Farm demand is expected to continue its growth as Rabi harvesting is advancing well. M&M sold 40,403 units, up 505pc from the prior year.
Escorts also shared a similar sentiment. Demand is also increasing on the back of rising crop prices and a positive forecast of 2021 monsoon season which is likely to support the farm auto segment, said the company release. The only concern mentioned by Escorts was the rising inflation. Escorts reported sales of 12,337 units, up 127pc from the prior year.
Honda and Kia reported healthy sales figures. Honda sold 7,103 units, up 92pc from the prior year and Kia sold 19,100 units, up 123pc from 2020 levels. Toyota Kirloskar sold 15,001 units, up 114pc from March 2020.
Two-wheeler manufacturer Hero MotoCorp reported strong sales on the back of recovering consumer demand. The coronavirus pandemic continues to impact the global auto industry, said the company release, but the company is witnessing strong preference for a wide range of motorcycles and scooters, especially from Latin American markets. Hero MotoCorp reported sold 576,957 units, up by 72pc from the prior year.
Most auto companies addressed the shortage of semiconductors and their focus on minimising the effects of supply-side constraints. At a time when the auto sector is reviving from the harsh effects of COVID-19, shortage of semiconductors and increasing COVID-19 cases can prolong the recovery period.