Auto Sales In November: Mixed Bag For Passenger Vehicles Manufacturers

Mobility Outlook Bureau
02 Dec 2021
05:25 PM
2 Min Read

According to industry estimates and sales reports released by car manufacturers, overall PV sales dipped 14% to 246,000 units in November 2021 compared to 286,800 units in the same month last year.


Even as global semiconductor shortage continues to play spoilsport for many manufacturers, the rise in demand for SUVs has helped many others deliver improved sales performance in the month of November – resulting in a mixed bag of sorts for the passenger vehicle manufacturers last month. 

Two of India's largest car manufacturers, Maruti Suzuki India and Hyundai Motor India, saw sales drop substantially, while Tata Motors, Skoda Auto India, Nissan Motor India and Toyota Kirloskar Motor posted handsome uptick in sales in November.

According to industry estimates and sales reports released by car manufacturers, overall PV sales dipped 14% to 246,000 units in November 2021 compared to 286,800 units in the same month last year. 

Industry experts indicate that the semiconductor shortage, unless completely restored, will continue to impact market changes and will remain dynamic. With a need for personal mobility rising due to fear of viruses, customers are also willing to try new brands and new cars as popular and more likable models have a long waiting period. Moreover, few customers are alternatively looking for second hand cars as they can get more value for their money. 

According to Emkay Global, improving chip supplies is expected to aid a sequential improvement in volumes for PVs in the coming months. The delayed harvest of Kharif crops affected rural cash flows and that has also impacted demand in rural areas. However, this is expected to be a temporary phenomenon, and cash flows should start improving as soon as the Kharif harvest gets fully monetized.

Sales of India’s largest car manufacturer Maruti Suzuki India dropped by 19.19% to 109,726 units in November 2021, as compared to 135,775 units in the same month last year. This has not come as a surprise, as the carmaker had already announced production cut by 15% in the same month. 

Similarly, Hyundai Motor India also saw a dip of 37% in sales largely due to less production of cars at its Chennai plant due to shortage of semiconductors. 

Interestingly, home-grown carmakers, Tata Motors and Mahindra & Mahindra saw a rise in their sales respectively. While Tata Motors posted a strong growth of 37.60% at 29,778 units in November 2021, M&M posted near 7% growth in the same month. 

According to Veejay Nakra, Chief Executive Officer, Automotive Division, M&M, “Our growth in SUVs continues with an 8% increase in the month of November. The demand remains strong across our product portfolio of SUVs, pickups, and small commercial vehicles. The issues around semiconductor related parts continue to remain a challenge for the industry. We are monitoring the situation closely and taking appropriate steps.” 

Toyota Kirloskar Motor, meanwhile, posted a high double digit growth of 52.83%, closing November 2021at 13,003 units. V Wiseline Sigamani, Associate General Manager (AGM), Sales and Strategic Marketing, TKM said demand from the market continues to be strong, and that is duly reflected in the company’s booking orders.

“We are hopeful of closing the calendar year next month with growth to show in all segments including the Glanza and the Urban Cruiser where TKM’s presence is relatively new.  However, with the positive response that both the models have garnered, we are trying our best to reach out to customers even in remote locations by further penetrating our reach in such areas” he added. 

On the other hand, driven by single product successes, Nissan India and Skoda Auto India posted triple digit growth in the month of November. 

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