Car sales in India have been adversely impacted for Sep 2021 – Despite demand being at a new high
September 2021 car sales data of most mass-market OEMs is out. Sadly, it was not a great month for the Indian automotive industry. Most OEMs registered a degrowth in terms of sales, whether we look at month over month performance or year vs year performance. Let’s have detailed analysis of OEM-wise performance.
Before we dive deep into data, we would like to mention that the figures quoted in the report are Dealer Dispatches, i.e. number of vehicles sold by OEMs to their dealership partners. Only exception is MG Motor, which historically has just shared the retail data, i.e. sales to end customers, from their dealer partners.
Maruti and Hyundai Maintain Lead
The degrowth in sales performance was majorly lead by the 2 dominant players in the Indian automotive space, namely Maruti and Hyundai. When compared with August’21, Maruti registered a massive 39% decline in its sales figures in Sep’21, and in the meanwhile Hyundai too registered a significant 29% decline in its overall sales figures.
If we were to compare the performance of Sep’21 with Sep’20, sales plummeted by 57% for Maruti and by around 34% for Hyundai. Overall market share of Maruti, which used to be around 50% a few quarters ago, slipped to just 34%. Hyundai’s market share also saw a small decline to around 17.8%.
Tata Motors Maintain No 3 Position
Over the last few quarters, Tata Motors has cemented its position as the third largest OEM in the passenger car segment. In September’21, it managed to sell 25,730 units, registering a degrowth of 8% over Aug’21. However, when compared to Septmeber’20, Tata registered a solid 21% increase in its sales.
When compared with last month, there were only 3 OEMs which managed to register minor increase in their sales. These were VW, Jeep and Citroen. However, if were to look at absolute numbers, the increase was of only 1,200 units. All other major manufacturers, including Kia, Mahindra, Toyota, Renault, Honda, MG, Nissan and Skoda registered double digit decline in their sales numbers. Ford, thanks to its move to exit India recorded 0 sales in September’21. Overall, the industry registered a 28.5% decline in sales numbers, and a sale loss of around 75,000 units.
The picture partially changes when we assess the data on a Year vs Year basis. OEMs like Kia, Mahindra, Renault and Honda recorded double digit declines in their sales. However, others like Toyota, MG, Skoda, Nissan, VW, Jeep recorded strong growth in their sales numbers. Nissan’s performance is majorly backed by its new launch, the Magnite. Overall, the segment declined by a massive 36% over Sep’20, recording a loss of around 1.06 lakh units.
Overall, Sales figures, degrowths and market shares are a result of multiple factors which come into play at the same time. September’20 was a relatively good month for the Auto Industry as the country was slowly getting out of the first-Covid wave restrictions, and there was massive pent-up demand which was being serviced. However, in September’21, there was no such major benefit.
Other critical issue which has impacted the overall sales performance is production related challenges, thanks to the ongoing semi-conductor shortage. Most OEMs would have registered way better sales numbers, if they had enough supplies of the chips required for supporting the new-age creature comfort features. Limited availability of chipsets has resulted in massive decline in production capacities, which has translated into lower sales.