Car Sales August 2021: Maruti Suzuki Reports Decline While Others Register Growth

As the festive season approaches, new car sales and SUV sales decline
As the festive season approaches, new car sales and SUV sales decline

Passenger vehicle sales dropped in August 2021 in India after accounting for consistent growth in June and July 2021. There has been a global shortage of semiconductors this time around, which has caused many automakers to reduce production.

Furthermore, the semiconductor crisis has occurred just as things were looking up for the domestic passenger vehicle industry. New car sales have been growing, but chip shortages continue to cause long waiting periods on a few models across manufacturers, resulting in waiting periods of up to eight months.

Considering that PV sales in July 2021 were 2,64,442 units and the growth was looking promising, the combined sales of ten manufacturers at 2,46,096 units show a 12 percent year-over-year increase. Nonetheless, the industry knows it could have been much more. The following are the wholesale numbers by the manufacturer for August.

Maruti Suzuki India: 

According to the latest sales figures from Maruti Suzuki, the country’s most popular carmaker sold 1,03,187 units last month, down 8.71 percent from a year earlier and 1,13,033 in August 2020. Due to the shortage of semiconductors, the manufacturer has worked to limit the impact it has on its production. There were 20,461 buyers of Alto and S-Presso (August 2020: 19,709/+3.81 percent), While customers purchased 45,577 units of Wagon R, Swift, Baleno, Celerio, Ignis, Dzire and Tour S this year, down 26.43 percent from last year’s 61,956 units sold.

However, UV models such as Ertiga, Vitara Brezza, S-Cross, XL6 and Gypsy were able to register a sales increase with 24,337 units sold (21,030 units or +15.72 percent). 2146 Ciaz sedans were sold, nearly doubling its previous figures.

There are quite a few model updates to look forward to from the Maruti Suzuki lineup, in addition to the all-new Celerio’s market launch in the near future.

Hyundai Motor India: 

Hyundai, which entered the month only second to Maruti in sales volume, registered 46,866 units last month, up marginally from 45,809 units in January 2008. Year on year, the economy grew by 2.30 percent. According to Hyundai, 48,042 vehicles were sold in July 2021, a drop of 2.4 percent from June.

Some of its models, such as the Creta and the i20, are experiencing unwavering demand, but it is not immune to the current shortage of semiconductors.

The Hyundai i20 N Line, being marketed as the “next evolution” in the i20 series, was launched in India recently at a starting price of Rs 9.84 lakh (ex-showroom). The Hyundai Casper micro-SUV is expected to launch early next year, although no new Hyundai models will be introduced soon.

Tata Motors: 

According to Tata Motors, its domestic sales increased 51 percent last month from 18,583 units sold in August 2020 to 28,018 units sold last month. However, Tata’s EV sales reached 1,000 units for the first time with 1,022 units sold (306/+234%). On August 31, Tigor also debuted an updated battery electric vehicle with a 306km range.

Despite that, monthly sales still dropped by 7 percent due to the shortage of semiconductors. Tata Motors has warned of severe consequences in the coming months and stated in a press release, “The recent supply lockdowns have worsened the supply situation and consequently the company will have to moderate production and offtake volumes.”

Mahindra & Mahindra:

Last month, the homegrown automaker shipped 15,973 units to dealers, an increase of 17 percent over the 13,651 units that were sold in January of last year. The company’s other products, such as the XUV300, Scorpio, Bolero Pick-up, and the recently launched Bolero Neo, currently enjoy good traction, however, it launched its flagship handset, the XUV700, on August 15. Because of its attractive pricing, the midsize SUV segment should see more sales of this vehicle.

The cars will see showrooms only in October, despite bookings starting already. Similarly, Mahindra’s diesel portfolio has been suffering because of the semiconductor crisis, as that is the fuel type that is suffering the most. In order to meet BS6 emission standards, the after-treatment system adds a higher concentration of chips.

Kia India: 

A year ago, Kia India sold 10,845 vehicles, marking a 54.5 percent increase over the 16,750 sold in August. The Seltos itself contributed 8,619 to August figures as a result of Kia recently launching a special edition X-Line version of the Seltos model. The remaining units consisted of 379 Carnival MPVs and 7,752 Sonet compact SUVs.

A completely new MPV from Kia is coming to India soon. Early in 2022, the market launch of this new model will occur (Codename: KY).

Toyota Kirloskar Motor: 

Total domestic dispatches by Toyota Kirloskar Motor (TKM) reached 12,772 units in August, representing a 130 percent increase from August 2020, when just 5,555 units were sold. In contrast, sales declined by a marginal amount compared to July 2021, when 13,105 units were sold.

TKM has been significantly affected by the second COVID-19 wave this year, which lasted from April to June, in part because it is based in Karnataka. As a result, the company is seeking compensation. New-generation Fortuner and Innova Crysta continue to enjoy strong demand in their respective segments, while Urban Cruiser and Glanza appeal to lower-end buyers.

Honda Cars India: 

Honda Cars India reported sales of 11,177 units last month, which represents a 49 percent increase over the previous year’s 7,509 units. Earlier this year, the company unveiled a refresh to the Amaze compact sedan that caused some excitement. As a percentage of Total August Sales Amaze accounted for 6,591 units.

A hybrid version of the City will also be introduced later this year. Honda is also developing a three-row SUV, which is highly anticipated.

MG Motor India:

In August of last year, MG Motor India sold 2,851 units, a 51 percent rise over the 4,315 units sold in August of last year. MG’s sales in July 2021 grew by 2.1 percent compared to the same month in the previous year, even on a month-to-month basis. According to the company, demand is strong across its entire line of products, including the Hector and Hector Plus siblings, as well as the Gloster and ZS EV.

A few new variants of the Hector were added in August so that the line was a little more diverse. Astor, MG’s fourth vehicle for our market, will go on sale during the festive season. MG will reveal the price of this vehicle during the holiday season.

Skoda Auto India:

The midsize SUV – Skoda Kushaq – was Skoda’s first entry in the Indian automotive market in the last few months. Skoda is able to increase its monthly sales volumes by 282 percent as a result of the crossover. Those numbers, which show 3,829 units sold in August 2020, are a big jump from the 1,003 sold in August 2020.

In addition to this mass-market SUV, Skoda has also been helped with August sales by its sedan models the Superb, Octavia, and Rapid.

Nissan Motor India:

Nissan delivered 3,209 vehicles to dealers, an improvement over August 2020s 810, when its game-changer SUV was not available in its domestic market. The semiconductor crisis has also greatly impacted Nissan, as can be seen from its downturn in sales month-on-month, with Nissan selling only 4,259 vehicles in July 2021.

Nissan reports that it has booked over 60,000 reservations for the Magnite, which is priced at under Rs 10 lakh and was launched in December 2020.

Are sales shattered?

Indian automakers are suffering from the semiconductor shortage, just as other carmakers around the world are. The PV market has been experiencing sustained growth in recent years, until supply chain issues and the lack of chips, which are critical to delivering high levels of information and connectivity to vehicles, stall sales.

The top PV players are adjusting their production schedules in wake of the chip shortage in order to ensure their highly coveted products are sent to dealers in time for the festive season which begins this month. The long waiting period deters people from purchasing a vehicle, which is one of the reasons why the used car market is currently experiencing such a surge in demand.

The chip crisis isn’t over yet, but no one knows how long it will last. Taiwan’s TSMC has predicted that it will survive at least until 2022. The writing is on the wall – a shortage of vehicles in India is likely to hurt the industry, especially during the festive season when consumers are more willing to spend.

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