Indian automakers post sales growth in Feb

Auto sales in India rose 13pc in February from prior year period after most companies posted double-digit growth. Passenger car segment fared well and commercial vehicles sales climbed on the back of pick-up in manufacturing and infrastructure activity.

Demand for SUVs and pick-ups have increased in February but supply of semiconductors is a global issue affecting every auto manufacturer, which might last for the next 3-4 months, according to automaker Mahindra & Mahindra. 

Passenger Car

Maruti Suzuki reported a sales growth of 12pc after selling 164,469 units in Feb. Tata Motor’s passenger vehicle sales rose 1pc to 27,225 units while Toyota sold 14,075 units, up 36pc from Feb 2020. Honda’s sales grew 28pc (9,324 units), Kia 7pc (16,702 units) and Hyundai grew 12 pc (51,600) from Feb 2020 levels. 

Farm Segment

Farm segment manufacturer, Escorts, registered a growth of 31pc after reporting sales of 11,230 units in February. Mahindra’s farm segment sales jumped 25pc to 28,146 units. The tractor demand is expected to maintain its strong growth on back of positive macroeconomic factors and strong rural cash flows. The supply side situation is normal, but rising inflation continues to be a worry, Escorts noted.

Two-wheeler Segment

TVS sales rose 18pc to 297,747 units in February from the previous year. Hero Motocorp registered 1pc growth (505,476 units), Royal Enfield was up 10pc (69,659) and Bajaj Auto’s sales rose 7pc (332,563) this month. 

Heavy Vehicles Segment

Ashok Leyland’s sales rose 19pc to 13,703 units in February from same month in 2020 while Eicher Motor’s heavy vehicles sales were up 19pc (5,457 units). Tata’s medium and heavy vehicle sales have risen 30pc from last Feb at 8,771 units. 

Q2 and Q3 were both very strong quarters with about 15pc growth, according to Maruti Suzuki. Bookings have improved as the economy is poised for improvement and COVID-19 related sentiments waning off.