India: Auto sales up by 4% m-o-m in Mar '21

Automobile industry sold 3,20,547 units for the third consecutive month in March. This translated to m-o-m growth of nearly 4% in Mar ’21 against 3,08,611 units in Feb ’21. The new launches (like Sonet, Magnite, Kiger, etc.) have proved vital to renew fervour in the industry and March being a financial year-end added to the rush. A lot of customers rushed to the showrooms to make their purchases last month to claim depreciation benefits (corporate buyers) and LTC benefit (government employees).

Maruti Suzuki India Limited (MSIL)- India's largest automaker, reported total sales of 146,203 units in Mar '21 led by utility vehicles, compact segment, LCVs and Vans. This is a growth of 1% m-o-m against 144,761 units sold in Feb ‘21.

Hyundai Motor India Limited (HMIL)- The South Korean carmaker’s domestic wholesales stood at 52,600 units last month compared to 51,600 units in Feb ‘21, marking a marginal 2% m-o-m growth. March 2021 sales have been the strongest for the quarter ended 31 Mar '21. Also, Hyundai has already laid the groundwork in its quest to dominate the Utility Vehicle (UV) market. The auto manufacturer is all prepped for the launch of its 7-seater Alcazar which would further set a new paradigm in the UV segment.

Tata Motors Limited wholesales witnessed growth at 29,654 units in Mar ’21, up 14% m-o-m against 27,225 units sold in Feb ’21. Additionally, the company's Passenger Vehicle (PV) business posted its highest-ever sales in nine years, in Mar '21 and Q4 FY ’21.

Kia Motors India has logged 19,100 units of sales volumes in Mar ‘21, up 14% m-o-m against 16,702 units sold in Feb ’21. It is impressive considering that the manufacturer only has three models in its line-up at the moment �" Sonet, Seltos and Carnival. Incidentally, Carnival is a low-volume premium MPV in the company’s range. The SUV pair of Seltos and Sonet are responsible for a major chunk of Kia’s sales in the Indian market.

Mahindra & Mahindra Limited, has reported its domestic auto sales (passenger vehicles+ utility vehicles) for the month of Mar '21 which stood at 16,700 vehicles, compared to 15,391 in Mar '20, marking a growth of 8.5% m-o-m. The new XUV500 is now scheduled to be launched in September with deliveries to commence from Nov '21.

Toyota Kirloskar Motor Pvt. Ltd., the Japanese automaker dispatched 15,001 units to dealerships thus witnessing a growth of 6.5% m-o-m last month against 14,075 units in Feb ’21. The demand for personal mobility still continues to grow. This reiterates the popularity of the brand amidst their customers which has been further enhanced by the two recent launches of the new Innova Crysta and the New Fortuner, as well as the Legender.

Renault, the French car brand, posted 12% m-o-m growth in Mar ’21 volumes at 12,356 units against 11,043 units sold in Feb ’21. The newly launched Kiger sub-compact SUV is currently one of its best-selling vehicles. Triber AMT and the Duster turbo are right now the key contributors to Renault's monthly sales.

Honda Motor Company Limited (HMCL), has posted sales at 7,103 units in Mar ‘21, marking a de-growth of 24% m-o-m against 9,324 units in Feb ’21. Honda is striving to sustain the growth momentum in future as buoyant customers have injected fresh vigour in the market. New products are expected to be launched in 2021.

Nissan Motor Company Limited has registered a total wholesales of 4,012 units in Mar ’21, down 5% m-o-m as compared to 4,244 units in Feb ’21. Going forward into the new financial year, the Japanese carmaker has been taking steps to strengthen its presence in India and grab a bigger chunk of the market.

Outlook- According to the analysts, passenger vehicle sales will remain the strongest. Healthy sentiments are expected as volumes are expected to grow, led by demand from North, Central and South India. Retail volumes have surpassed pre-Covid levels as both rural and urban demand grew 30-35% y-o-y and 10-15% y-o-y, respectively.