New car, SUV sales dip in January 2022; chip woes continue

With the global chip shortage extending well into the new year, carmakers continue to face production challenges, which is clearly visible from their January sales numbers. However, there is improvement if the numbers are viewed from a month-on-month perspective. The passenger vehicle segment recorded total sales of 2,94,872 units in January 2022 – a 16 percent MoM increase in sales. Maruti Suzuki, once again, leads the chart, while Hyundai regains the second spot from Tata Motors in terms of monthly sales.

• Hyundai regains second spot from Tata in terms of monthly sales
• Kia finds themselves firmly in the top 5
• Toyota recorded the biggest YoY and MoM decline in sales

Total PV sales, however, has fallen 3 percent on a year-on-year basis (January 2021: 3,03,398), with even top players like Maruti Suzuki and Hyundai posting negative year-on-year growth. Tata Motors, however, has been the biggest gainer with a significant rise in market share as compared to last year.

Maruti Suzuki – 1,28,924 units/ -7 percent

Maruti Suzuki India has reported domestic sales of 1,28,924 PVs in January 2022, down 7 percent on year-ago sales of 1,39,002 units. The leading carmaker in the country continues to be severely impacted by the semiconductor crisis, and that has naturally affected production. Maruti Suzuki, however, did record a 5 percent MoM growth, compared to December 2021's 1,23,016 units.

Other than the Ciaz in the midsize sedan segment and the UV segment, Maruti Suzuki recorded a YoY decline in sales for every other segment. The Ciaz sold 1,666 units last month (up from 1,347 units in January 2021), while Maruti’s entry level Alto and S-Presso sold 18,624 units combined, down from 25,153 units sold in the same period last year.

The compact segment comprising the Baleno, Celerio, Dzire, Ignis, Swift, Tour S and Wagon R recorded sales of 71,472 units, down 6.4 percent (January 2021: 76,935). The UV segment (Ertiga, XL6, Vitara Brezza and S-Cross), however, recorded an 11.5 percent uptick in sales at 26,624 units (January 2021: 23,887).

Hyundai – 44,002 units/ -15 percent

Hyundai recorded total PV sales of 44,002 units in January, thus posting a healthy 36 percent MoM growth with sales of just 32,312 units in December 2021. This, however, was enough for Hyundai to reclaim the second spot in monthly sales performance, which it had lost to Tata Motors in December last year. However, on a YoY basis, the Korean carmaker recorded a 15 percent decline in sales as it had sold 52,005 units in January last year.

Notably, Hyundai has also lost out on 2.2 percent market share when compared to January last year. Hyundai’s top-sellers continue to be the Creta and Venue SUVs along with popular hatchbacks like the Grand i10 Nios and the i20.

Tata Motors – 40,780 units/ 51 percent

Tata Motors have had a remarkable start to the year with total sales of 40,780 units in January 2022, its highest monthly sales of all time. Tata recorded a 16 percent MoM growth in sales (December 2021: 35,300) and an impressive 51 percent YoY growth (January 2021: 26,980). Tata Motors have gained a sizeable 4.9 percent market share as compared to January last year. 

Tata’s biggest hits were, of course, its SUVs, which accounted for 28,108 units last month. Both the Nexon and the Punch sold over 10,000 units each, while the higher-priced Harrier and Safari managed close to 8,000 units. Tata's EVs also saw the highest ever sales with the Nexon EV and Tigor EV together selling 2,892 units in January. What’s also impressive is that the Tiago and Tigor CNG have together sold over 3,000 units in just the first month of their launch, comprising 42 percent of all Tiago and Tigor sales.

It's also worth mentioning that Hyundai and Tata, in second and third positions, respectively, are well ahead of the rest of the players.

Mahindra and Mahindra: 19,964 units/ -3 percent

Mahindra has secured fourth position in terms of monthly sales performance, with total PV sales of 19,964 units. That is an MoM increase of 13 percent (December 2021: 17,722), however, YoY sales have declined by 3 percent (January 2021: 20,498). Interestingly, Mahindra has held its ground with 6.8 percent market share, identical to what it was in January last year.

Mahindra, too, has been severely impacted by the semiconductor crisis. Both the Thar and the XUV700 have garnered nearly 1 lakh bookings, but due to production constraints, both models currently have a huge waiting period, extending up 84 weeks in the case of the latter.

Kia: 19,319 units/ 1 percent

Just shy of 645 units from Mahindra in fourth position, Kia sold a total of 19,319 units in January. With a market share of 6.6 percent (up from 6.3 percent last January), Kia has firmly earned its spot among the top 5 carmakers in the market, and is comfortably clear of Honda in sixth place. The Seltos continued to lead the charge for Kia India’s sales and contributed to over 59 percent of the January numbers, with 11,483 units going home to buyers.

On the back of poor performance in December last year, with sales of just 7,797 units, Kia has had a good recovery this month, posting a 148 percent MoM increase in sales. On a YoY basis, however, it’s just 1 percent. And while Kia’s volumes were driven by only two models– Seltos and Sonet – the Korean carmaker is gearing up to launch the Carens later this month. It will not only widen Kia’s portfolio in India, but will bring in new buyers from the three-row SUV/MPV segment.

Honda – 10,427 units/ -8 percent

A considerable way off the market leaders, Honda sold 10,427 units in January 2022, registering an 8 percent YoY de-growth over the sales numbers over the same period last year of 11,319 units. The company attributed a part of the decline to the temporary weekend lockdowns. The Japanese carmaker, however, did record a 31 percent MoM increase in sales with 7,973 units sold in December 2021.

Renault – 8,119 units/ -1 percent

Renault sold a total of 8,119 PVs in January. The French carmaker recorded an uptick of 32 percent on an MoM basis, with 6,130 cars sold in December 2021. However, on a YoY basis, sales were down by 1 percent compared to 8,209 units sold last January. The Kwid, the Triber MPV and the Kiger were the primary volume drivers for Renault in India.

Toyota: 7,328 units/ -34 percent

The Japanese carmaker’s sales dealer despatches clocked 7,328 units last month, registering a 34 percent YoY decline (January 2021: 11,126). Even MoM sales were down by 32 percent (December 2021: 10,833).

While it launched the updated Camry Hybrid last month, Toyota reached the 1,00,000-unit sales milestone for its Glanza and Urban Cruiser – models shared with its alliance partner Suzuki. The company claims these two cars have helped it tap 66 percent of the first-time buyers in the Tier I and Tier II markets. The Innova Crysta and Fortuner also continue to be in popular demand.

MG Motor: 4,306 units/ 20 percent

MG Motor too bucked the trend and registered a notable 20 percent YoY uptick in January sales with 4,306 units going home to customers. The company’s sales in January last year were pegged at 3,602 units. On an MoM basis, the growth was even more significant at 69 percent, with just 2,550 units sold last December. However, the carmaker has cautioned facing challenges with the global chip shortage and supply chain constraints that continue to hamper production at its Halol plant in Gujarat.

Nissan: 4,250 units / 5.7 percent

Nissan’s sales in January were pegged at 4,250 units, a 5.7 percent YoY increase compared to year-ago sales of 4,021 units. Monthly sales were also up by 41 percent compared to December 2021 when it sold 3,010 units.

The Nissan Magnite continues to pull demand for the carmaker, which is on strong grounds in the entry-level compact crossover segment in the Indian market. The Magnite has garnered over 78,000 bookings as per the company’s claims and over 42,000 units have been produced since its launch in December 2020, at the carmaker’s plant in Chennai.

Volkswagen and Skoda (3,523 units, 3,009 units/ 73 percent, 200 percent)

The Volkswagen and Skoda duo posted very healthy YoY growth in sales. Volkswagen, which fared the better of the two, sold 3,523 units in January, thus recording a 73 percent YoY increase. Meanwhile, Skoda registered a notable three-fold, 200 percent growth in sales which climbed to 3,009 units last month, compared to 1,004 units in January last year. Both carmakers, however, witnessed an MoM sales decline of 5 percent and 7 percent, respectively.

With the Taigun and the Kushaq now bringing in the numbers, their market share has improved compared to last year. Volkswagen’s market share stands at 1.2 percent, while Skoda has 1.0 percent, up from 0.7 percent and 0.3 percent, respectively. Skoda is now gearing up for the launch of the all-new Slavia sedan in March, which the brand hopes will also bring in significant volumes, and that will be followed by Volkswagen's Virtus, later in April.

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