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WRAP: Passenger vehicle sales grow in Jul, but wait times get longer

Informist, Monday, Aug 1, 2022

 

By Satyanarayan Iyer

 

PUNE – Hinting at the easing of semiconductor supply, four-wheeler makers–big and small—registered stellar growth in terms of sales in July. However, the domestic car industry is now caught in a paradox: Sales are rising, but so are customers’ wait times for new orders.

 

Both homegrown automaker Tata Motors Ltd and its Japanese competitor Toyota Kirloskar Motor Pvt Ltd posted their “highest ever” sales in July.

 

Together, the top four automakers–Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd and Mahindra and Mahindra Ltd–dispatched 271,724 passenger vehicles in the domestic market last month, up 9.6% on year.

 

These four automakers shipped another 35,000 passenger vehicles overseas, nearly the same as the year-ago period.

 

Interestingly, different factors drove growth for different automakers.

 

For Tata Motors, sport utility vehicles contributed to about 64% of its total sales in July, up from 45% a year earlier. It said that sales of its sub-compact sport utility vehicle was the highest since launch at 11,007 units.

 

Similarly, Toyota Kirloskar Motor posted its “highest ever” sales in India at 19,693 units, adding that it had been receiving “exceptional” response to its newly launched petrol-electric hybrid vehicle, Urban Cruiser Hyryder.

 

Kia India, which has taken rapid strides in the domestic auto industry since its commercial foray in August 2019, saw its July sales rise 46.7% on year to 22,022 units.

 

Among all automakers, the passenger carmakers are estimated to have dispatched close to 340,000 units in July to domestic dealerships.

 

WAIT TIME CONTINUES

Despite an increase in domestic dispatches, the wait time for customers in the passenger vehicle market–specifically for sport utility vehicles–is not getting any shorter.

 

Automakers have been sitting on a pile of orders, which has raised the wait time on some vehicles like the Mahindra & Mahindra Ltd’s XUV 700 to over 24 months.

 

The company further said that it has received 100,000 bookings for its newly launched Scorpio N sport utility vehicle. However, only 20,000 of these can be delivered till end of 2022, it said. The automaker already had received bookings of 170,000 units of other vehicles in its offerings.

 

Maruti Suzuki India said it had received 100,000 bookings for its newly launched Grand Vitara and refreshed Brezza sport utility vehicles. This is set to send the company’s output sharply higher in the sport utility vehicle segment.

 

The cumulative outstanding orders of the passenger vehicle auto industry now stands at over 1 mln units.

 

While companies are trying to maximise output, the wait time is likely to continue for the foreseeable future.

 

To ensure minimum wait time, Kia India said it has been running its production line in full capacity since February with utmost optimisation.

 

Tata Motors has been aggressively working to close the Ford India plant’s buyout in Sanand, Gujarat to get an additional 20,000 units capacity on stream.

 

End

 

Edited by Tanima Banerjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

 

Source: Cogencis

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