NEW DELHI: Led by pent-up demand and fall in Covid-19 cases, passenger vehicle (PV) sales grew by little lower than 50% year-on-year in July 2021, data released by carmakers show.India’s largest carmaker Maruti Suzuki (MSIL) sold 13,3,732 units in the domestic market last month, up 37% compared to July 2020. While the company said a year-on-year comparison is not meaningful because of last year’s low base due to pandemic-related disruptions, MSIL’s sales last month is closer to what it sells in a regular month.
Hyundai (HMIL), the second-largest carmaker, reported a 26% annual increase in sales in July at 48,042 units. “A positive growth momentum is clearly visible in the passenger vehicle industry with the stabilisation of macro-economic factors, good monsoons and increase in consumer shift towards personal mobility,” said Tarun Garg, director (sales, marketing & service) at HMIL.
Other leading PV makers such as Tata Motors, Kia, Mahindra (M&M) and Toyota registered 70% to 140% growth in year-on-year sales. Homegrown Tata Motors doubled its PV sales last month at 30,185 units while Toyota dispatched 13,105 units, up 143% YoY. Kia’s July 2021 sales went up by 76% to 15,016 units and the brand crossed the 1-lakh sales mark in the CY2021, indicating an improving market sentiment. M&M sold 21,046 units last month, up 91% YoY.
Veejay Nakra, Chief Executive Officer, Automotive Division, M&M, said, “We have seen significant increase in activity levels, enquiries and as a result, sales across our product portfolio.” He added that supply of semiconductors continues to be a global issue and they are doing everything to address it on priority.
Meanwhile, demand for two-wheelers in India remained in slow lane due to variety of reasons. Leading OEMs such as Hero MotorCorp and TVS reported decline in July 2021 domestic sales when compared with July 2020 numbers. Bajaj Auto and Royal Enfield reported 2% and 4% growth in July 2021 domestic 2W sales, respectively. “Higher fuel prices, closure of colleges and high unemployment rate are the major reasons why 2-wheeler sales aren’t picking up,” said a senior executive at a leading vehicle manufacturer.
