Maruti Suzuki saw domestic PV growth at 92% y-o-y, Tata Motors on the other hand marked a 422% y-o-y growth in the PV segment, as Mahindra & Mahindra Ltd saw domestic PV sales grow 394%
Commercial vehicle sales continue to improve with pickup in the economy
Automobiles sales during the month of March continued to remain strong. The stellar growth numbers however were also helped by the low base of last year. The strong traction in passenger vehicles (PV) sales continues. Analysts believe that consumer sentiments in the PV segment remain positive due to a preference for personal mobility. Commercial vehicle (CV) sales continue to improve with pickup in the economy. Tractor sales were already strong, and momentum continues. Two-wheeler sales remain a weak link, and with tepid demand the recovery is awaited.
The strong traction in PV segment continues as was evident from stellar numbers posted by Maruti Suzuki India Ltd, Tata Motors Ltd, Mahindra & Mahindra Ltd, etc. “The overall PV volumes for the top 11 companies recorded a very sharp growth of around 125% on a YoY (year-on-year) basis but the growth print is relatively moderate at 4% on a sequential basis (month on month) suggests Acuité Ratings & Research data.
Maruti Suzuki India Ltd, the leader in PVs saw domestic PV growth at 92% on a year-on-year (y-o-y) and 1.0% on month-on-month (m-o-m) basis. Tata Motors Ltd on the other hand marked a 422% y-o-y growth in the PV segment, as Mahindra & Mahindra Ltd saw domestic PV sales grow 394%. Analysts say that a significant number of new and competitively priced product launches, particularly in the compact SUV segment have helped. The recent announcement on the scrappage policy and various other measures are likely to remain supportive for forward prospects.
For Tata Motors the commercial vehicle segment continues to see significant improvement too. As its total CV sales grew 470% year-on-year during March, for the January- March quarter as a whole, the total CV sale grew 52% year-on-year.
The total domestic sales of the top four market leaders in the CV space registered a very high positive growth of 616% YoY and 33% MoM in March, 2021" suggest Acuité Ratings & Research data.
As CV sales growth impressed, the outlook also remains good and is likely to be helped by economic recovery moving forward in FY22.
Tractor sales continue to see strong momentum in March. M&M saw total tractor sales (domestic and export) during March 2021 at 30,970 units grow 127.5%. For the period FY21, the company has reported 17% y-o-y growth in overall tractor sales number. Going ahead, tractor demand is expected to continue its firm trajectory. Strong Rabi acreage and now progressing harvesting season. Good reservoir levels are also to help ensure good sowing of summer crop as monsoon forecasts will remain awaited.