Auto Sales In August 2022: Maruti Suzuki Sales Jump 26%, Hero MotoCorp Sales Rise 2%

India’s auto companies clocked higher sales across segments in August compared to last year driven by inventory ramp-up at dealerships for the festivals.

Factory-gate shipments of carmakers saw growth over the comparable month last year, largely in-line with consensus estimates. Maruti Suzuki’s sales growth fell a bit short of expectations as chip shortage continued to hamper production.

The two-wheeler companies’ domestic dispatches rose in anticipation of higher demand during festivals. The rise in domestic two-wheeler sales came partly at the expense of lower exports.

In the commercial vehicle category, the government's strong focus on infrastructure kept sales higher.

However, the tractor sales rose year-on-year against the analysts’ expectation of a fall. While Escorts Kubota’s sales rose 7.3%, market leader Mahindra & Mahindra witnessed a sales growth of 1%.

The world's largest two-wheeler maker Hero MotoCorp Ltd.'s sales rose 1.9% year-on-year to 4,62,608 units in August.

• Motorcycle sales grew 2.4% to 4,30,799 units.

• Scooter sales fell 4.4% to 31,809 units.

• Exports nearly halved to 11,868 units.

TVS Motor Company Ltd's two-wheeler sales climbed 15% year-on-year to 315,539 units in August, as per the company's exchange filing.

• Total sales, including those of three-wheelers, rose 15% to 333,787 units.

• Motorcycle sales rose 17% to 157,118 units, while scooter sales jumped 40% to 121,866 units.

The company is optimistic about the demand in the domestic two-wheeler market due to the upcoming festive season, it said in the filing. The improved availability of semiconductors have supported in reaching a balanced supply chain, the company is now geared up to swiftly meet the festive demand, TVS Motor said.

Eicher Motors' total motorcycle sales rose 53% year-on-year to 70,112 units in August.

• Sales of motorcycles with engine capacity up to 350cc rose 61% to 62,236 units.

• Sales of two-wheelers with engine capacity exceeding 350cc grew 8% to 7,876 units.

• Exports rose 6% to 7,220 units.

Tata Motors Ltd.'s passenger vehicle sales rose 68% year-on-year to 47,166 units in August, according to an exchange filing.

Sales Snapshot (YoY):

• Overall, total domestic sales, including those of commercial vehicles, rose 41% to 76,479 units.

• Total sales of commercial vehicles, including exports, rose 6% to 31,492 units.

India's largest carmaker, Maruti Suzuki India Ltd., reported a 26.4% growth in total sales to 1,65,173 units in August even as chip shortage had minor impact on production. The company's sales were impacted by shortage of semiconductors last year.

Sales Highlights (YoY):

• Exports rose 4.2% to 21,481 units.

• Sales of passenger cars in mini and compact segment rose nearly 42% to 93,719 units.

• Utility vehicle dispatches up 10.7% to 26,932 units.

Mahindra & Mahindra Ltd.'s passenger vehicle sales rose 87% year-on-year to 29,852 units in August.

The company's tractor sales beat analysts' estimates with 1% growth to 21,520 units in the month.

Sales Snapshot (YoY):

• Domestic sales of commercial vehicles jumped 142% to 21,492 units,

• Domestic sales of three-wheelers rose 85% to 4,793 units.

Uneven monsoon has impacted paddy sowing in some areas, but festive season may lead to revival in demand, Hemant Sikka, president of farm equipment sector at M&M, said in a press release.

Eicher Motors Ltd.'s commercial vehicle subsidiary VE Commercial Vehicles Ltd reported 4.4% year-on-year growth in dispatches to dealerships in August.

• Total Eicher trucks and buses sales rose 4.8% to 4,893 units

• Exports fell 54.8% to 363 units, while domestic sales jumped 17.2% to 4,530 units

Ashok Leyland Ltd.'s total sales grew 51% year-on-year to 14,121 units in August, according to a company's exchange filing.

Sales Highlights (YoY):

• Total sales of medium and heavy-duty trucks rose 70% to 7,325 units

• Sales of buses more than tripled to 1,054 units.

• Total light commercial vehicle sales witnessed sales growth of 21% to 5,742 units.

Escorts Kubota Ltd.’s total tractor sales rose 7.3% year-on-year to 6,111 units in August. The sales defied consensus estimates which pegged the sales to fall 9.8% in the month.

• Domestic tractor sales rose 7.9% year-on-year to 5,308 units

• Exports of tractors rose 3.9% to 803 units

The company expects better sales in September and a stretched peak selling season of three months this time due to early start of the festivals.

In August, some parts of the country received heavy rainfall, while some are still rain deficient; it remains to be seen how monsoon behaves in September, the company said in an exchange filing.

Bajaj Auto Ltd.’s sales rose 8% year-on-year to 4,01,595 units in August, according to its exchange filing.

Sales Snapshot (Y-o-Y):

• Domestic two-wheelers sales up 48% to 2,33,838 units

• Two-wheeler exports down 32% to 1,21,787 units

• Total commercial vehicles sales up 31% to 45,970 units

India's auto sales is expected to be higher across segments in August 2022 as companies ramped up dispatches to dealerships ahead of the festive season.

Factory-gate shipments of carmakers rose over last year as improved availability of chips led to higher production, according to research reports compiled from Emkay Global Financial Services Ltd., Motilal Oswal Financial Services Ltd. and Dolat Capital Market Pvt.

Wholesales of passenger vehicles is likely to see stellar growth, aided by a lower base, as a global chip shortage disrupted production in the comparable period.

The dispatches of two-wheelers are expected to improve owing to festive demand and inventory build-up with dealers, the reports stated. July and August are typically weak months for two-wheeler sales, it said.

Here's a look at the auto sales in August 2022, as reported by the companies: