InvestorQ : How were the auto sales numbers for November 2021 and is the microchip shortage still hitting auto companies like Maruti, Hyundai, M&M and Tata Motors?
Aditi Sharma made post

How were the auto sales numbers for November 2021 and is the microchip shortage still hitting auto companies like Maruti, Hyundai, M&M and Tata Motors?

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Mahima Roy answered.
5 months ago
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Here is what you need to know about the auto numbers reported for the month of November 2021. Remember, these are just auto dispatch from the manufacturer to the dealer and not the actual sales by the dealers. Here is a gist.

a) You are right about the microchip shortage as that is the latest big crisis hitting the auto sector in India. You would be aware that most auto companies have been forced to cut production. That will take time to improve. Let us now move to the numbers.

b) Maruti reported -9% fall in total sales at 139,184 units for the month of November. Domestic sales were down -18% at 117,791 units, partially offset by growth in exports. There was a fall in sales across key segments including mini cars, compact cars and mid-sized sedans. However, the utility segment witnessed growth in sales.

c) Hyundai India, the second largest passenger manufacturer in India, also saw -21% fall in sales at 46,910 units in the month of November. Here again, local sales were down -24% while exports were lower by just about -5%. Here again, it is about microchip shortage.

d) Interestingly, Tata Motors grew sales by 25% at 62,192 units for November 2021. This excludes the JLR unit. TAMO saw growth in its passenger car business by 21% in domestic cars and 15% growth in CV sales. The company is in the midst of a major restructuring as it shifts focus to EVs.

e) Mahindra & Mahindra reported -6% fall in sales at 42,731 units for the month of November 2021. The growth was still positive at 7% in the passenger vehicles segment but the pressure came from the commercial vehicles segment which contracted -23%. The tractor sales also fell by -15% in the month of November. Even Escorts reported -30% fall in tractor sales.

f) In two-wheelers, Bajaj Auto reported -10% fall in sales at 379,276 units with the exports continuing to outperform the domestic sales. TVS Motors, reported -15% fall in sales at 272,693 units. The story was the same as Bajaj Auto with domestic sales lower by -29% but exports growing by 30% in Nov-21.

To sum it up, the microchip shortage continues to rule the roost and put pressure on auto dispatches. However, the export market continues to flatter even as local markets are under pressure.

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