Except market leader Maruti Suzuki, all carmakers recorded growth in sales during August despite the upward climb of fuel prices. Low interest rates, strong demand for SUVs and new launches, helped push volumes for nine manufacturers who control more than 90 percent of domestic sales.
Total domestic sales of eight carmakers in August grew 11 percent to 246,096 units compared to the same month last year, as per data declared by them. While the festive season is round the corner automakers are struggling to keep up with demand due to semiconductor supply shortages.
Maruti Suzuki, India’s largest carmaker, posted an 8.7 drop in wholesale domestic volumes to 103,187 units in August due to a production cutback announced by its contract manufacturing company at the Gujarat plant. Suzuki Motor Gujarat had to forgo production on each Saturday of August due to semiconductor shortages.
“Sales volume of the company in August 2021 was affected due to electronic components shortage. The company took all possible measures to limit the adverse impact”, Maruti Suzuki said in a statement. The company has further warned of September volumes being only 40 percent of the ‘normal production level’ due non-availability of chips.
The maker of Creta and Venue, Hyundai Motor India, recorded 2.3 percent growth in volumes to 46,866 units during August compared to the same month last year. The company is gearing up to introduce the i20 N Line model in India in September.
Tata Motors, India’s third largest carmaker, recorded 50.7 percent growth in retail sales in August to 28,018 units, compared to the same month last year. This included 1022 units of electric vehicles (EV) also. This is for the first time that Tata Motors EV sales have crossed the 1000 per month milestone.
“Semiconductor shortage continues to impact the auto industry globally. The recent lockdowns in East Asia have worsened the supply situation and hence Tata Motors is forced to moderate production and offtake volumes in the coming months,” Tata Motors stated.
Kia India dethroned Mahindra & Mahindra to grab the fourth spot, selling16750 units in August, a growth of 54 percent compared to the same month last year.
Tae-Jin Park, Executive Director and Chief Sales and Business Strategy Officer, Kia India said, “With the festive season around the corner, we are anticipating a further rise in this number. To cater to the pent-up and upcoming demand of our vehicles, we are taking appropriate measures to enhance the production output.”
Utility vehicle specialist Mahindra & Mahindra recorded 17 percent growth in August domestic wholesale volumes to 15973 units. The growth came on the back of new launches XUV700 and Bolero Neo.
Toyota Kirloskar posted 130 percent growth in August volumes to 12,772 units as against the same month in 2020, helped by robust demand for the Innova Crysta and Fortuner. MG Motor’s sales grew by 51 percent to 4315 units while sales of Skoda Auto surged 281 percent to 3829 units in August.
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