Automobile companies made a strong recovery in the month of May 2022, registering healthy growth in vehicle sales as compared to the previous month. Almost all segments, including the passenger vehicles (PV), commercial vehicles (CV) and tractors witnessed decent sales growth.
Last year, the domestic automobile industry was hit hard by the COVID-19 pandemic and the lockdown, which disrupted the supply chain and adversely affected the operations of auto companies. The pandemic also derailed consumer demand resulting in lower sales for the industry.
However, with the economy coming out of the woods, the carmakers seem to be witnessing strong demand and ramping up production as the supply-side headwinds ebb.
Almost all carmakers registered a sharp three-digit jump in the sales for the month of May as compared to a year ago period due to a lower base.
Let’s look at the sales of some listed automobile companies in the month of May
|Company||Sales in May 2022||Change (MoM)||Change (YoY)|
|Mahindra & Mahindra||53,726||15.4%||208%|
|TVS Motor Company||302,982||2.6%||81.54%|
The country’s largest passenger car manufacturer Maruti Suzuki saw a 246% jump in total vehicle sales at 1,61,413 in May 2022 as compared to the same month last. The company’s sales grew by over 7% from April.
Its total sales in May include domestic sales of 128,000 units and sales to other original equipment manufacturers (OEM) of 6,222 units. The company also registered its highest ever monthly exports of 27,191 units during the month under review.
“The shortage of electronic components had a minor impact on the production of vehicles, mainly on domestic models. The company took all possible measures to minimise the impact,” Maruti Suzuki said.
The sales of Maruti Suzuki’s mini cars, which comprise Alto and S-Presso, stood at 17,408 units, while the sale of its compact segment, which includes models such as Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR was at 67,947 units last month.
Tata Motors sold a total of 76,210 units of vehicles in May 2022. This is a 185% jump from the 26,661 units sold last year and a 5.1% growth as compared to sales in April 2022. In the domestic market, the auto major sold 74,755 vehicles during the month.
The company’s domestic passenger vehicle segment witnessed sales of 43,341 units, while its domestic commercial vehicle segment sales increased to 31,414 units last month. Tata Motors saw its highest-ever monthly sales in the internal combustion engine (ICE) passenger vehicles segment.
Tata Motors sold 3,454 electric vehicles (EV) in May 2022.
Mahindra & Mahindra (M&M)
Utility vehicle manufacturer Mahindra & Mahindra posted total auto sales of 53,726 units last month. This was a massive surge of 208% YoY and a rise of 15.4% MoM. The company exported 2,028 units of vehicles.
In the Utility Vehicles segment, M&M sold 26,632 units. The Passenger Vehicles segment which includes Utility Vehicles, Cars and Vans sold 26,904 vehicles in May 2022. In the Commercial Vehicles segment, the company sold 21,149 vehicles.
M&M’s Farm Equipment Sector (FES) registered total tractor sales of 35,722 units, as against 24,184 units for the same period last year.
Domestic tractor sales grew to 34,153 units, while exports for the month stood at 1,569 units.
Commercial vehicle maker Ashok Leyland posted total commercial vehicle sales at 13,273 units in May 2022 as compared to 3,199 units, YoY. The sales, if compared to April 2022, increased by 18.50%.
Domestic sales of the Hinduja Group flagship company stood at 12,458 units in May 2022 versus 2,738 units, YoY.
The company sold 6,847 units of M&HCV Trucks and 1,098 units of M&HCV Buses during the month in the domestic as well as international markets.
The world’s largest two-wheeler manufacturer Hero MotoCorp sold 4,86,704 units of vehicles in May 2022. Sequentially, this translates into a growth of 16% over the month of April 2022, when the company sold 418,622 units. The company sold 183,044 units in the corresponding month of 2021.
Total sales include 4,52,246 units of motorcycles and 34,458 units of scooters.
During the month under review, Hero MotoCorp’s domestic sales stood at 4,66,466 units, while export sales stood at 20,238 units.
Two and three-wheeler manufacturer Bajaj Auto saw a marginal rise in total vehicle sales at 2,75,868 units in May, as compared to 2,71,862 vehicles sold in the year-ago month.
Bajaj Auto’s total domestic sales increased 85% to 1,12,308 units from 60,830 units, while exports decreased 22% to 1,63,560 units from 2,11,032 units a year ago.
The company’s total two-wheeler sales rose 4% YoY to 2,49,499 units, while commercial vehicle sales declined 16% YoY to 26,369 units.
TVS Motor Company
TVS Motor Company clocked total sales of 3,02,982 units in May 2022, registering more than 81% growth over 1,66,889 units sold in the same month last year. As compared to April this year, the company’s sales improved by just 2.6%.
Total two-wheelers sales grew from 154,416 units in May 2021 to 287,058 units in May 2022. The three-wheeler of the company grew 28% YoY from 12,473 units to 15,924 units in May 2022.
The management of the automobile manufacturers seemed optimistic about the future growth across segments. The semiconductor supply situation is getting better while consumer sentiment is improving, as highlighted by the companies. The onset of a normal monsoon is likely to aid demand further, especially from the rural side.
Hero MotoCorp said that the volumes in the month of May indicated the continuously improving consumer sentiment and the company expects the positive trend to continue in the coming months, on the back of normal monsoon, decent Rabi harvest and continued government policy support.
“We welcome the recent decision of the government to reduce the central excise duty on petrol and diesel, which has substantially brought down the fuel costs, thereby providing much-needed relief to motorcycle and scooter users in the country. We also welcome the steps taken to cut duties on iron and steel inputs, which should help in softening steel prices in the domestic market,” said Vikram Kasbekar, Executive Director, Hero MotoCorp.
Highlighting the fact that the shortage in the supply of semiconductors has impacted the production and sales of premium two-wheelers, TVS Motor Company said that it was working aggressively with alternate sources and taking every effort to improve supplies at the earliest.
“Some improvement has been seen this month. We are optimistic that volumes will revive to normal levels once the semiconductor supplies improve,” TVS Motor Company said.
Meanwhile, with the timely arrival of the southwest monsoon and forecast of a normal monsoon, the kharif crop is expected to deliver record production.
“Food prices continue to be high, ensuring better remuneration for farmers for their produce, creating a positive sentiment and higher demand for tractors and agri implements,” said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra.
Disclaimer: This article is for information purposes only and should not be considered as stock recommendation or advice to buy or sell shares of any company. Investing in the stock market can be risky. It is therefore advisable to research well or consult an investment advisor before investing in shares, derivatives or any other such financial instruments traded on the exchanges.