Auto Sales In September 2022: Festival Season Boosts Dispatches, Two-Wheelers In Slow Lane

Indian automakers witnessed strong sales growth in September as improved supply of vehicles and pre-festive season inventory build-up at dealerships boosted dispatches.

As estimated by analysts, the passenger vehicle sales remained robust, while motorcycle sales continued to show weakness in the two-wheeler segment.

Carmakers either reported highest-ever monthly sales or touched peak dispatches in many months. For two-wheeler companies, exports were weak with motorcycle sales also disappointing in the domestic market.

The sales volumes in commercial vehicles and tractors segment also beat estimates, suggesting an even stronger festival season for companies.

Mahindra & Mahindra Ltd.’s passenger vehicle sales rose 15.6% to 34,508 units, compared with August. With 34,262 dispatches, the company registered highest-ever monthly sport utility vehicle sales in the month.

Sales Highlights (MoM):

• Sales of commercial vehicles rose 0.8% to 21,666 units.

• Three-wheeler sales jumped 20.5% to 5,774 units.

In September, the automaker’s tractor dispatches also saw highest-ever monthly sales with growth of 21% year-on-year to 48,713 units.

“Demand remained strong during the month owing to festive boost, which we expect to continue in October as well,” Hemant Sikka, president - Farm Equipment Sector at M&M, said in a press release.

The passenger vehicle sales grew a whopping 163% compared with same period last year. The semiconductor shortage disrupted production last year leading to significantly lower sales.

Bajaj Auto Ltd.’s total dispatches to dealerships fell 2% year-on-year to 394,747 units in September. While sales of two-wheelers in domestic market aided volumes, the weakness in exports dragged down the overall tally.

Sales Snapshots (YoY):

• Sales of two-wheelers in domestic market grew 28% to 222,912 units.

• Exports of two-wheelers fell 33% to 125,443 units.

• Total sales of commercial vehicles rose 13% to 46,292 units.

Eicher Motors Ltd.'s total motorcycle sales in September rose 17% to 82,097 units, compared with the previous month. The additional sales from newly launched model Hunter 350 aided the growth in volumes.

Sales Highlights (MoM):

• Sales of motorcycles with engine capacity up to 350cc rose 19.2% to 74,206 units.

• Sales of motorcycles with engine capacity exceeding 350cc flat at 7,891 units.

• Exports jumped 17% to 8,451 units.

The Royal Enfield's parent company witnessed 145% year-on-year growth in dispatches due to the favourable base effect. Severe chip shortage limited the company's production last year leading to significantly lower sales.

The world's largest two-wheeler maker by volumes Hero MotoCorp Ltd.'s struggle to register sales growth continued in September as dispatches fell 2% to 5,19,980 units.

Sales Snapshot (YoY):

• Sales of motorcycles fell 1.9% to 4,80,237 units.

• Sales of scooters declined 2.9% to 39,743 units.

• Exports fell over 50% to 12,290 units.

Heading into the peak festive season, normal monsoon across most parts of the country and the encouraging farm activity is likely to contribute towards positive customer sentiments, the company said in a statement.

Hero MotoCorp also said that it will launch its first electric vehicle on Oct. 7.

India's largest carmaker by sales volume Maruti Suzuki India Ltd.'s total dispatches to dealerships rose 6.7% month-on-month to 1,76,306 units in September.

Sales Highlights (MoM):

• Total domestic sales rose 10.6% to 1,48,380 units.

• Sales in mini and compact segment rose 8.6% to 1,01,750 units.

• Utility vehicle sales grew 21% to 32,574 units.

The company's total sales more than doubled in September as compared to last year. The maker of Brezza was one of the worst affected by the shortage of semiconductors.

"Sales volume in September 2021 was adversely impacted due to shortage of electronic components, a year-on-year comparison may not be meaningful," the company said in the exchange filing.

Commercial vehicle major Ashok Leyland Ltd.'s wholesale dispatches registered a strong growth of 84% year-on-year to 17,549 units in September.

The sales were higher than the average of estimates by three brokerages, which pegged the monthly sales at 14,867 units.

Sales Snapshots (YoY):

• Total sales of medium and heavy commercial vehicles more than doubled to 11,314 units.

• Sales of light commercial vehicles rose 39% to 6,235 units.

TVS Motor Co.'s two-wheeler dispatches rose 9% year-on-year to 3,61,279 units in September.

Sales Highlights (YoY):

• Total sales rise 9% to 3,79,011 units.

• Scooter sales grew 39% to 1,44,356 units, while motorcycle sales rise 2% to 1,69,322 units.

• Domestic two-wheeler sales registered 16% growth to 2,83,878 units but exports fell 12%.

Tata Motors Ltd.’s passenger vehicle sales jumped 85% year-on-year to 47,864 units in September. The jump comes on a low base as sales were impacted due to shortage of semiconductors last year. The dispatches rose just 1.5% compared with those in August.

Sales Snapshot (YoY):

• Total domestic dispatches to dealerships rose 44% to 80,633 units.

• Total commercial vehicle sales rose 5% to 34,890 units.

• Sales of electric vehicles grew more than threefold to 3,655 units.

The company expects the festive season to witness strong retail sales with improving supply of vehicles, Shailesh Chandra, managing director at Tata Motors Passenger Vehicles Ltd., said in a statement.

Commercial vehicle sales were driven by medium and heavy vehicles due to improving fleet utilization, pick up in road construction and increased consumption of cement, Girish Wagh, executive director at Tata Motors, said.

Eicher Motors Ltd.'s commercial vehicle subsidiary VE Commercial Vehicles Ltd. reported 9.2% year-on-year growth in dispatches to dealerships in September.

• Total Eicher trucks and bus sales rose 8% to 6,498 units.

• Exports fell 35.8% to 506 units, while domestic sales jumped 14.7% to 5,992 units.

Escorts Kubota Ltd.’s total tractor sales rose 38.7% year-on-year to 12,232 units in September. The sales were considerably higher than analysts’ consensus estimates, which pegged the growth at just over 1%.

• Domestic tractor sales rose 42.7% to 11,384 units.

• Tractor exports inched up 0.8% to 848 units.

These are the highest-ever sales in September for the company and it expects the momentum to continue in the current festive season with positive macroeconomic factors, above normal monsoon and onset of an early festive season, Escorts said in a statement.

India’s automakers are announcing their September sales figures today.

Sales are expected to be higher as companies continued to ramp up dispatches to dealerships for the festive season, according to analysts. Carmakers also benefited from the improved supply of semiconductors. However, analysts’ estimates also show slower growth in sales for two-wheelers compared to last year.

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