PV demand jumps as personal mobility gains traction in FY22
Premium- Latest company figures show that the growth has come despite supply chain bottlenecks
Passenger vehicle sales in FY22 grew 13% from the previous year despite supply chain bottlenecks, company figures released on Friday showed, as demand for personal mobility rose.
Car market leader Maruti Suzuki sold 170,395 units in March, marginally above the 167,014 units in March 2021. In FY22, its sales grew 13.4% at 1,652,653 units. Exports at 26,496 units in March were its highest ever. The company was able to ramp up exports despite constraints on chip availability, as its export mix is relatively less affected by shortage of chips. Indian automakers count despatches to wholesalers as sales.
According to Shashank Srivastava, executive director, Maruti Suzuki India, while the passenger vehicle market has staged a healthy recovery from the pandemic-torn FY21, total industry volumes have shrunk considerably in the aftermath of covid-19-related global supply chain disruptions. “The overall passenger vehicle industry sold 3.069 million this fiscal, compared with 2.711 million last financial year, a growth of 13.2%. The industry has performed well considering all the supply chain constraints we faced, however, we are now back to FY17 production levels, which is something to keep in mind," he said.
Hyundai, the second-largest passenger car maker in India, also recorded an over 6% growth in sales for FY22 at 610,760 units and a 23% jump in exports over the last year, too.
Tata Motors and Mahindra & Mahindra performed well in FY22 thanks to their successful sports utility vehicles (SUVs). Tata Motors’ FY22 sales, including its electric vehicles, grew 67% from a year ago to touch a record 370,372 units. The company’s EV production was 353% higher than the previous year, at 19,106 units. In March, the automaker sold 42,293 units, up 43% over the previous year.
M&M said wholesale dispatches of SUVs at 27,603 in March were 65% higher than the same month last year.
Even as demand for personal mobility remains strong and waiting periods lengthy amid short supply of certain models, manufacturers are uncertain about the global supply chain. “Demand continues to be strong, even as we remain watchful of the global supply chain and take appropriate action, as required", Veejay Nakra, chief executive officer, automotive division, M&M said.
“Going forward, the semiconductor situation remains uncertain. We will continue to monitor the evolving situation closely and are refining our agile, multipronged approach to continue to fulfil customer orders," said Shailesh Chandra, managing director, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd.
According to ratings agency Icra Ltd, domestic sales of cars in March were slightly lower on a yearly basis, but showed recovery month-on-month. “In March 2022, domestic wholesale volumes at about 320,000 units represented about 6% growth on a sequential basis and only a marginal about 0.4% decline on y-o-y basis," Rohan Kanwar Gupta, vice president & sector head - corporate ratings, Icra said.
Srivastava of Maruti said supply chain visibility for the months to come was still unclear.
“We expect supply chain problems to persist this quarter, and ramping up production to 100% is some time away," he added.
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