Auto sales – a key barometer of the economy – showed a positive trend in July, indicating that companies have eased production constraints caused by semiconductor shortages. But industry executives warned that the correction could be impacted by any hike in interest rates and commodity price inflation.
The country’s largest carmaker Maruti Suzuki recorded sales of 175,916 units in July 2022, an increase of 8.28 per cent over July 2021.
The company’s sales were mainly driven by compact cars, including Baleno, Celerio, DZire, Ignis, Swift, Tour S and WagonR. Their sales increased to 84,818 units in July 2022 from 70,268 units a year ago.
Sales of Mini cars – which include Alto and S-Presso – stood at 20,333 units last month, up from 19,685 units in July 2021. However, sales of utility vehicles – which include Brezza, Ertiga, S-Cross and XL6 – declined by 23,272 units as against 32,272 units a year ago.
Shashank Srivastava, Senior Executive Director (Marketing and Sales), Maruti Suzuki said that although production has improved significantly due to better supply of semiconductors, pending bookings are still high. Maruti alone has a pending order book of around 335,000 units.
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“While the booking trend now looks encouraging, it will depend on how the central bank (Reserve Bank of India) stands on the rate hike. As of now, the hike in key interest rates has had little impact, with retail sales showing a modest ‘de-growth’,” he said.
Mumbai-based Tata Motors’ sales showed the fastest year-on-year (YoY) growth – a 52 per cent jump in July 2022 to 81,790 units; In July 2021, this figure was 54,119 units. While total domestic commercial vehicle sales grew 44 per cent to 31,473 units, passenger vehicle sales grew 57 per cent to 47,505 units in July 2022.
The company’s sales were driven by the Nexon compact SUV, which has been its best-selling model and is also among the top five selling models in recent months across the industry. Apart from Nexon, Punch and Altroz have also been consistently registering good sales in the domestic market.
Hyundai reported sales of 50,500 units (5.1 per cent YoY) in the domestic market as against 48,042 units a year ago. Its exports were up 9.4 per cent year-on-year from 12,207 units to 13,351 units. Total sales came in at 63,851 units – up 6 percent YoY.
Tarun Garg, Director (Sales, Marketing and Service), Hyundai Motor India said: “With the improving semiconductor situation, the passenger vehicle segment is showing a positive trend, riding on the green shoot of demand and customer desire towards personalized Is. mobility. Moreover, the recently launched Hyundai Tucson has built strong momentum ahead of the festive season and has garnered an overwhelming response from the customers. We remain optimistic about the prospects of the Indian auto industry.