Beating all bumps, car sales grow 27% in 2021

NEW DELHI: Led by SUVs and new fashions, the passenger autos business staged a spirited comeback in 2021 regardless of challenges of semiconductor scarcity and a lethal second wave of the coronavirus, as gross sales grew 27% and crossed the psychological 30 lakh-unit mark for under the third time in historical past.
Regardless of extreme manufacturing constraints and an extended supply backlog (estimated at 7 lakh models), automobile firms despatched 30.82 lakh models to dealerships in calendar yr 2021, in opposition to 24.33 lakh models in 2020. The speed of development was robust as a consequence of a low base as 2020 was the primary yr to have been impacted by the pandemic resulting in a interval of large uncertainty.
Passenger autos gross sales had crossed the 30-lakh mark for the primary time in 2017 the place complete gross sales stood at 32.3 lakh models. In 2018, the business had closed at 33.95 lakh models, earlier than slipping in 2019 to 29.62 lakh models.
For Maruti Suzuki, the nation’s largest carmaker which was additionally impacted severely by the semiconductor crunch, gross sales stood at 13.65 lakh models in 2021, in opposition to 12.14 lakh models in 2020. Nonetheless, this was far wanting the 17.31 lakh models it had bought in 2018.

Maruti’s rival Hyundai, nevertheless, reported a 19% development in its 2021 home numbers at 5 lakh models in opposition to 4.2 lakh models in 2020. The corporate has additionally been hit by the semiconductor scarcity with the supply backlog of autos similar to Creta and Venue SUVs at over 1 lakh models.
Shashank Srivastava, gross sales & advertising and marketing director at Maruti, mentioned firms have initiated steps to deal with the semiconductor scarcity, although the state of affairs stays fluid. “From a low manufacturing stage which was at 40% of capability, we might scale as much as 83% by November, and to 87% by December. We’re hopeful that this progress will probably be maintained as we transfer forward,” Srivastava advised TOI.
Nonetheless, he added that demand too stays fluid. “It’s tough to forecast. There are elements which nonetheless make the state of affairs unsure. These embody availability of semiconductors, the expansion of the economic system, and the way the Covid state of affairs pans out,” he mentioned.
The business can also be grappling with excessive enter prices, which has seen costs of autos go up over the previous few months. Srivastava mentioned a recent spherical of worth hikes will occur within the subsequent few days.
New fashions additionally led to the cost in 2020, and these included autos such because the XUV7OO and the Thar for Mahindra & Mahindra. The corporate is grappling with a deluge of bookings, which has seen a ready checklist that runs into properly over a yr for some variants. “The problems round semiconductor-related components proceed to be a problem for the business and is a serious focus space for us,” mentioned Veejay Nakra, CEO of M&M’s automotive division.