NEW DELHI: Sales are surging. Indian passenger vehicle market registered a dependable double-digit growth at 18% in the last month of the most painful year for the automotive industry. The rise in demand for safer and personal mobility, new launches, and a low base due to BS-IV destocking last year helped passenger vehicles to post positive growth for the fifth straight month in December.
According to industry veterans, it is still very early to conclude that the passenger vehicle segment has recovered from last December as most carmakers started destocking inventory at dealerships, the lower base of the previous year doesn’t make it really comparable.
As per brokerage firm, Motilal Oswal Financial Services, the low stock at the passenger vehicle and tractor dealerships gave enough headroom for higher dispatches from the factory after strong festive sales with high retails.
Covering nearly half the Indian passenger vehicle market, Maruti Suzuki registered a healthy growth of 15% in December 2020. India’s largest carmaker dispatched 1,40,754 units last month against 1,22,784 units in December 2019. It continued to post strong demand for smaller cars and hatchback with several first-time buyers flocking at its outlets.
Hyundai Motor India Limited registered 25% growth in domestic sales mainly on the high demand for popular models like Creta, i20 and Venue. Its December sales were at a historic high in the last month of the year.
The South Korean carmaker supplied 47,400 units to its dealers in December 2020 compared to 37,953 units in the same month last year.
Pushing the needle, Tata Motors passenger vehicle business unit is on a bull run posting 84% growth at 23,546 units in December 2020. According to a company spokesperson, PV business posted its highest-ever sales in the last 33 quarters.
Domestic passenger vehicle (PV) sales stood at 23,545 units last month against 12,785 units in December 2019, up 84%.
Shailesh Chandra, president, passenger vehicles business unit, Tata Motors, said, “The PV industry continues to grow robustly in Q3 FY’21, owing to pent-up demand, strong festive season and shift towards personal mobility in these challenging times.”
Moving forward, jolted by the supply crunch of semiconductors, home-grown automaker Mahindra & Mahindra could only dispatch 16,182 units in December 2020, 3% growth over last year.
“Our overall sales have been affected by the continuing supply chain challenges related to the constantly changing global environment, more specifically the supply shortage of micro-processors (semiconductors) used in electronic control units,” Veejay Nakra, chief executive officer of Mahindra’s Automotive Division said.
New entrants such as Kia and MG Motor too registered positive growth supported by the newly-launched product excitement. The market has been on a roll for the festive season with customers taking huge deliveries and generating far higher sales for the year.