The global shortage of electronic components coupled with high fuel costs and longer waiting periods have dampened the sales momentum.

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Money Automobiles Tuesday, November 02, 2021 - 12:38

India's major automobile manufacturers registered subdued sales numbers for October on the back of production issues caused due to a global shortage of electronic components. High fuel costs and longer waiting periods also dampened the sales momentum.

In terms of sales, auto major Maruti Suzuki India's October total sales fell over 24% to 138,335 units in October 2021, from 182,448 units sold during the corresponding period of last year. Besides, the company's total domestic sales including passenger and commercial vehicles in addition to off-take by other OEMs fell during the month under review. The sales fell to 117,013 units last month from 172,862 sold in October 2020.

However, it reported its highest-ever monthly exports of 21,322 units in October 2021. "While the shortage of electronic components continued to affect the production of vehicles during the month, the company took all possible measures to minimise the impact," the automaker said in a statement. "Accordingly, the company sold more vehicles than the sales volume expected at the start of the month."

Hyundai Motor India also reported a decline in October cumulative sales. The company's October sales fell by over 36.7% on a year-on-year basis, falling to 43,556 units last month from 68,835 units sold during the corresponding period of 2020.

Geography-wise, the domestic sales declined to 37,021 units from 56,605 units reported for the corresponding period of last year. Similarly, exports for the period decreased. The company was able to ship out 6,535 units down from 12,230 units sold abroad during October 2020.

Another automobile manufacturer Honda Cars India's domestic sales fell to 8,108 units in October 2021 from 10,836 units sold in the domestic market in the corresponding period last year.

"In terms of demand, the festive buying kept pace with last year and continues to show good momentum. Our factory despatches during October 2021 increased by 20% as compared to September 2021 and we were able to wholesale our entire factory stock of the month," said Rajesh Goel, Sr Vice President and Director, Marketing & Sales, Honda Cars India.

"While the situation still remains dynamic due to the ongoing supply-side challenges, we are making all possible efforts to maintain a steady delivery pace and cater to the market demand effectively,” he added.

Tata Motors, however, showed an increase of 31% year-on-year in cumulative sales at 65,151 units sold in October 2021 compared to 49,669 in October 2020. Total passenger vehicle sales, too, increased by 44% annually to 33,925 vehicles sold in October 2021. 

Meanwhile, Toyota Kirloskar Motor (TKM) announced that the company sold a total of 12,440 units in the month of October 2021, clocking a growth of 1% compared to 12,373 units sold in October 2020.

Commenting on the sales, V Wiseline Sigamani, Associate General Manager(AGM), Sales and Strategic Marketing, TKM said, “Demand in the market has been robust in the last few months and this can be attributed to various factors besides pent up demand. Customer orders too have been on a constant rise, restoring normalcy in demand trends when compared to pre-COVID times.”

In terms of two-wheeler segment, Hero MotoCorp reported total sales of 5,47,970 units, down from 8,06,848 units sold during the corresponding period of last year.

"Demand in the festive season has been building up as we move towards Dhanteras and Diwali, and we expect healthy retail over the coming weeks," the company said in a statement.

"With the economy gradually opening up with several other positive indicators, such as encouraging farm activity and surge in preference for personal mobility, a swift revival in sales is expected in the coming months,” it added.

Honda Motorcycle & Scooter India's total sales stood at 432,207 units, including 394,623 domestic sales and 37,584 exports for the month.

"With the much awaited festival season in progress, we are witnessing a gradual rise in engagement registering more enquiries from prospective customers with each passing day," said Yadvinder Singh Guleria, Director, Sales & Marketing, Honda Motorcycle & Scooter India.

"The 2Ds (Dhanteras & Diwali) are just around the corner and we expect this auspicious period to amplify the positivity in terms of conversions.”

With IANS inputs