The country's largest carmaker Maruti Suzuki reported a 1.2% decline in the wholesale of passenger vehicles (cars and utility vehicles) at 1,22,685 units as compared to 1,24,280 units sold during the same month last year.
In total, including domestic, exports and sales to other emerging markets, the company's total wholesale stood at 1,55,857 in June 2022. This includes domestic sales of 125,710 units, sales to OEMs of 6,314 units and exports of 23,833 units.
Maruti Suzuki says the shortage of electronic components had a "minor impact" on the production of vehicles, mainly domestic models. The company says it took all possible measures to minimise the impact.
The company dispatched 14,442 units of mini category cars, Alto and S-Presso, in June 2022 vs 17,439 units dispatched in June 2021. In the compact category, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, the company wholesaled 77,746 units as compared to 68,849 units dispatched in June 2021. In the mid-size category, which included Ciaz, the company sold 1,502 units, growth from 602 units sold during the same period last year.
Maruti's exports rose significantly to 23,833 units in June 2022 from 17,020 units dispatched in June 2021.
Tata Motors Ltd, on the other hand, dispatched around 79,606 units in the domestic market, recording an 82% rise in June 2022 from 43,704 units sold in June 2021. On a month-on-month basis, the wholesales increased by 101%.
In Q1 FY23, Tata Motors commercial vehicles domestic sale was at 95,703 units, 121% higher than Covid-impacted Q1 FY22. "The growth in Q1 has been broad-based across regions and segments. The M&HCV and I&LCV segments grew by 104% and 138%, respectively, over the same quarter (Q1) last year on the back of increased activity in road construction, mining, and growth in agriculture and e-commerce," says Girish Wagh, executive director, Tata Motors.
Wagh says going ahead, Tata Motors remains "cautiously optimistic" about overall demand while keeping a close watch on interest rates, transporter profitability, commodity prices and semiconductor availability.
Tata Motors has also decided to increase the prices of its commercial vehicles by up to 2.5% from today i.e. July 1 amid rising input costs. Tata Motors says it absorbs a major portion of input costs at many levels of manufacturing but the steep rise in input costs has forced it to pass on the extra cost to customers. This is the third hike by Tata Motors this year after it raised the prices of its passenger vehicles by 0.9% in January and the commercial range by 2.5% in March.
The auto sector, which is one of the worst-hit industries due to Covid-19, is grappling with various issues like chip shortage, supply chain constraints and high commodity prices.
Auto major Mahindra & Mahindra Ltd recorded a 59% rise in domestic passenger vehicle wholesale at 26,880 units in June 2022, as compared to 16,913 units sold in June 2021. In the commercial vehicles and 3-wheelers category, Mahindra sold 26,620 vehicles, while its overall auto sales for June 2022 stood at 54,096 vehicles, registering a growth of 64%.
Veejay Nakra, president of the M&M automotive division, says Q1FY23 is Mahindra's second consecutive highest SUV sales quarter. During the month, Mahindra XUV700 was awarded the Global NCAP ‘Safer Choice’ award. "The supply chain situation continues to remain dynamic; we are monitoring the situation closely,” says the company.