Domestic PV, two-wheeler sales rise in Feb, exports plummet
3 min read . Updated: 02 Mar 2023, 12:19 AM IST
PremiumMajor two-wheeler manufacturers reported a 7.17% increase in domestic sales in February
New Delhi: Indian automakers reported mixed performance in February, with an increase in domestic sales of passenger vehicles, two-wheelers, and commercial vehicles offset by plummeting exports across all segments from a year earlier.
Passenger vehicle wholesales in India rose to 335,269 units in February, representing a 10.6% increase from a year earlier. Major two-wheeler manufacturers, including Hero MotoCorp, TVS Motor Company, and Bajaj Auto, reported a 7.17% rise in domestic sales for the same month. However, data shared by auto companies with stock exchanges on Wednesday revealed a sharp decline in exports, with passenger vehicle exports dropping by 27% and two-wheeler exports plummeting by nearly 59%.
Weak demand, surging inflation and a depreciation in the currency against the dollar in key export markets such as Latin America and Africa has significantly beaten down exports for Indian OEMs.
Even as domestic sales grew, automakers were cautious in their outlook towards the supply of semiconductor chips, which has kept waiting periods high for sought-after sports-utility vehicles (SUVs) for many automakers.
“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models", Maruti Suzuki said in a statement. Maruti Suzuki, the country’s largest carmaker, recording a 10.8% increase in domestic sales, selling 1,55,114 units in February. Mahindra & Mahindra saw a 9.7% increase in domestic passenger vehicle sales, selling 30,358 units, while Tata Motors recorded a 7.4% increase in domestic passenger vehicle sales at 43,140 units.
“We continue our trend of selling more than 30,000 SUVs per month, and February saw a growth of 10% in the segment and an overall growth of 8%. Our recent launches (Thar RWD and XUV400) have received a very positive response, and we see good demand across our portfolio as well. We are monitoring and taking appropriate steps on the supply chain scenario of semiconductors, which continue to be dynamic," said Veejay Nakra, president of the automotive division at Mahindra & Mahindra.
Hero MotoCorp, the country’s largest two-wheeler maker, recorded a 15.3% increase in sales in February at 382,317 units from a year earlier. TVS Motors saw a minor decline of 0.2% in domestic sales, selling 267,026 units. However, the company’s electric vehicle sales saw a significant increase, selling 15,522 units compared to just 2,238 units in the same period last year. TVS Motor is now the country’s second-largest electric two-wheeler maker, followed by Hero MotoCorp-backed Ather Energy. Ola Electric continues to lead the electric scooter sales chart with over 25% market share at the end of February, according to vehicle registration data available on the government’s Vahan portal.The penetration of electric two-wheelers in the total two-wheeler market remained flat at 5.2% month-on-month in February.
Domestic sales for Bajaj Auto grew 36% in February compared to a year ago
Sales of tractors continued to grow at a healthy double-digit pace in February, with Escorts Kubota clocking an over 27% year-on-year surge in sales in February and Mahindra & Mahindra recording a 30% improvement in farm equipment sales for the same period. Sales of medium and heavy commercial vehicles also grew in the month of February.