Auto Sales December 2021: All you need to know!
It’s the start of the new month and the auto industry is ready with their December sales numbers. Let’s find out which company fared well in its segment.
Four Wheeler Cars:
Passenger Vehicles grew 6% YoY (9% MoM): Dec’21 wholesales indicate easing of semiconductor shortages.
- Wholesales were in line with street estimates of ~153.15k units, down 4% YoY and 10% MoM.
- Domestic volumes declined by 13% YoY (+11% MoM) to 130.9k units.
- Compact segment volumes declined by 10% YoY (+22% MoM) to 71.7k units (est. 70.2k units).
- Mini segment volumes declined by 34.5% YoY (-7% MoM) to 16.3k units (est. 21.4k units). Ciaz volumes declined by 5% YoY (+10% MoM) to 1,204 units.
- UV volumes grew 8% each YoY and MoM to 29.5k units (est. 29.6k units).
- LCV volumes declined by 47% YoY (-8% MoM) to 3k units (est. 3.4k units).
- Export volumes grew 124% YoY (+4% MoM) to 22.3k units (est. 21.5k units). This is the highest ever export number achieved by the company.
- Domestic PV volumes grew 50% YoY (+18.5% MoM) to 35.3k units and exports grew 82% YoY (-4% MoM) to 162 units. Overall, PV volumes grew 50% YoY (+18% MoM) to 35.5k units.
Mahindra & Mahindra
- Utility Vehicles volumes grew 14% YoY (-2.5% MoM) to 36.1k units (est. 39.7k units).
- Domestic Passenger UV sales grew 10% YoY (-9% MoM) to 17.7k units
- Pickup/SCV volumes grew 15% YoY (6% MoM).
Two Wheelers down 9% YoY (+7% MoM):
- Volumes declined by 12% YoY (+13% MoM) to 394.8k units
- Attractive schemes offered by OEMs to dealers have resulted in a sequential improvement in wholesales for the company. Retail demand continues to remain tepid for the overall industry.
- Volumes declined by 8% each YoY and MoM to 250.9k units.
- Wholesales declined by 8% each YoY and MoM to 250.9k units.
- 2W volumes declined by 9% each YoY and MoM to 235.4k units.
- Domestic 2W volumes declined by 17% each YoY and MoM to 146.8k units.
- 2W export volumes grew 9% YoY and 8% MoM to 88.6k units.
- Domestic sales of 2Ws to be affected by supply constraints in the premium category. A sustained export momentum should provide volume support
- Royal Enfield’s dispatches grew 7% YoY (+43% MoM) to 73.75k units (est. 58.6k units), signifying easing of supply-chain constraints.
- There might be a step-up in volumes with the new Classic 350 and an improvement in the supply of semiconductors.
Commercial Vehicles flat YoY (+9% MoM)
Tractors down 24% YoY (34% MoM): Volumes declined due to the focus of OEMs on inventory correction
Mahindra & Mahindra
- Tractor volumes declined by 18.5% YoY (-34% MoM) to 18.3k units.
- Management commentary: We have sold 16,687 Tractors in the domestic market in Dec’21. The decline in Dec’21 has been on account of a high base of last year and a delayed and heavy rainfall in some geographies. We expect the momentum to recover in coming months as good progress on Kharif procurement boosts liquidity in the hands of farmers and with Rabi acreage showing signs of growth over last year. In the export market, we have sold 1,582 tractors, a growth of 27% over last year.
- Wholesale volumes at 4.7k units (est. 5.8k units)
- Dispatches declined by 39% YoY (-34% MoM) to 4.7k units (est. 5.8k units).
- Domestic sales declined by 44% YoY (-37% MoM) to 4.1k units (est. 5.3k units) and exports grew 22% YoY (flat MoM) to 615 units.
- Construction Equipment posted sales of 377 units, down 14% YoY (+21% MoM)
- Management commentary: Going forward, all macroeconomic factors including healthy water reservoir levels remain in favor of the Tractor industry. We have hiked prices, but rising inflation continues to be a worry.