Auto Sales December 2022: Why Did Car Sales Drop On A Sequential Basis?

December was a mixed bag for the automobile industry. The sales of passenger vehicles were stable in December but reported a drop on a month-on-month basis. The commercial vehicle sales increased, the two-wheeler segment growth was at a slow pace, and tractor sales reported healthy growth in December. Factors like persistent hikes in two-wheeler prices, inflationary pressures, weak rural demand, and increased ownership costs have resulted in tepid two-wheeler demand for most of 2022.

Among the key players, Maruti Suzuki reported a decline, and Tata Motors and Hyundai reported growth year-on-year. Kia India reported maximum growth in domestic sales YoY. For the calendar year 2022, the industry reported record-high sales at 37.93 lakh units against 30.81 lakhs in 2021.

Below are updates from all major car-makers in India for December 2022:

Passenger Vehicle Sales in December 2022

Maruti Suzuki Sales December 2022 - India's largest carmaker, reported a decline in its passenger vehicle (PV) to 124,135 units in December. In December 2021, the company sold 148,767 units. Sequentially, the sales decreased from 1,59,306 units in November. The shortage of electronic components had some impact on the production of vehicles in December. The company said that it took all possible measures to minimize the impact. 

Sales of mini cars, including Alto and S-Presso declined to 11,348 units, against 19,396 in the same period last year. Similarly, sales in the compact segment, including models such as Swift, Celerio, Ignis, Baleno, and Dzire, declined to 72,405 units against 86,694 cars in December 2021. Sequentially, the numbers for the mini and compact segments were down. Utility vehicle sales, including Brezza, Ertiga, S-Cross, XL6, and Grand Vitara, also decreased to 27,303 units from 31,794 vehicles in the year-ago period.

Hyundai Sales December 2022 - The company recorded a domestic sales increase of 20.18% in December 2022 compared to last year and cumulative sales growth of 18.4%. Hyundai reported 38,831 domestic sales in December 2022, compared to 32,312 cars in the same month last year. Sequentially, sales were down. Hyundai's domestic wholesales stood at 57,852 units in December 2022. The exports in November stood at 19,021. 

When it comes to overall sales for CY22, Hyundai has maintained the No 2 position with over 5.5 lakh units sold. It is about 26k units more than that of Tata Motors. In the first half, the company was in the third position, but with a better second half, it regained its second spot. Q3 2022 was the best quarter of the year. The company has strengthened its SUV line-up with the introduction of three new trend-setting SUVs: the all-new Hyundai VENUE, TUCSON, and Hyundai VENUE N Line.

Tata Motors Car Sales December 2022 - The third-largest car manufacturer sold 40,043 passenger vehicles in India in December 2022, a growth of 13.4% year-on-year. Sequentially, the total PV domestic sales decreased from 46,425 units.

In the PV IB segment, Tata Motors sold 364 units, a massive growth of 123% year-on-year. The company’s electric vehicle PV business in December continues to grow at a good rate. Tata Motors sold 3,868 EVs in December 2022, registering a 64.2% year-on-year growth. In the year-ago period, it sold only 2,355 EVs.

Mahindra & Mahindra Car sales December 2022 - The company continues to see very strong demand in its passenger vehicle segment. The company sold 28,445 units under the PV category, a growth of 61% year-on-year. The cars and vans sales declined by 56% under PV. Mahindra’s Utility Vehicles segment recorded monthly sales of 28,333, growing 62% over last year. Due to continuing international disruptions and increasing coronavirus cases, the company is keeping a close watch on the dynamic supply chain situation.

Two Wheeler Sales in December 2022 in India

Hero Motocorp Sales Figures December 2022 - With total sales of 394,179 units of motorcycles and scooters in December 2022, the company registered a marginal decline in sales of 0.1% over the same month of last year when it sold 394,773 units. Motorcycles commanded a 90.50% share in December 2022, down from 95.5% held in December 2021. Scooter sales more than doubled year-on-year to 37,430 units in December 2022 from 17,911 units sold in December 2021. Domestic sales increased, while exports reduced to nearly half compared to last year. 

With the upcoming festive and marriage season in many parts of the country, and with the continuously improving consumer sentiment on account of favorable macroeconomic indicators, the company expects a positive momentum to build up from the fourth quarter onwards. 

TVS Sales December 2022 - For TVS, the total two-wheelers sales decreased year on year. The company reported total sales of 227,666 units in December 2022, down from 235,392 units in December 2021. Domestic two-wheeler sales registered a growth of 10%, increasing from 146,763 units in December 2021 to 161,369 units in December 2022.

Motorcycles registered sales of 124,705 units in December 2022, as against 133,700 units in December 2021. Scooters registered a growth of 14%, with sales increasing from 67,533 units in December 2021 to 76,766 units in December 2022.

Bajaj Auto Sales December 2022 - In the two-wheeler space, Bajaj Auto's domestic sales stood at 1,25,525 units for December month, a decline of 2%, compared to 1,27,593 units in the year-ago period. In December 2022, two-wheeler exports stood at 1,21,499 units, which is a decline in sales by 36% compared to December 2021, when Bajaj Auto exported 1,91,176 units. Overall, 2-wheeler sales stood at 2,47,024 units, a decline of 23%.

Commercial Vehicle Sales in December 2022 in India

Tata Motors - Total domestic Commercial Vehicle sales for December 22 stood at 32,954 units compared to 31,008 units in December 2021, a growth of 6.3%. Domestic sales of M&HCV in December 2022 stood at 10,885 units, compared to 8,106 units in December 2021. Sales for CV exports declined from 3143 units on December 21 to 995 units in December 2022, a decline of 68.3% YoY.

Mahindra - In the Commercial Vehicles segment, Mahindra sold 3,031 LCV < 2T (7% growth year-on-year), 16,170 LCV 2T - 3.5T (29% growth year-on-year), and 879 LCV > 3.5T + MHCV (51% growth year-on-year) in December 2022. 3 wheelers, including electric 3Ws sales, stood at 5,052 in December 2022, a growth of 104% YoY. 

Bajaj Auto - In the commercial vehicle segment, Bajaj sold 23,030 units in December in the domestic market compared to 18,386 units in December 2021, registering a growth of 25%. Exports were down significantly as the company was able to export only 11,432 units compared with 25,315 units exported in the year-ago period. Bajaj’s overall commercial vehicle sales in December 2022 declined 21% compared to the previous year.

Tractors Sales in December 2022 in India

Mahindra - Total tractor sales during December 2022 were at 23,243 units, as against 18,269 units for the same period last year. Exports for December month stood at 1603 units, compared to 1,582 units in December 2021. 

Escorts - Escorts' domestic tractor sales increased 22% year-on-year to 4,979 units in December 2022 from 4,080 units sold in December 2021. Export tractor sales in December 2022 were 594 tractors as against 615 tractors sold in December 2021. Rural sentiments continue to remain favorable on account of good kharif procurement, rabi sowing, and better water level in reservoirs.

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