Ratings and Research (Ind-Ra) November 2021 report highlights the trends in the
sub-segments of the auto sector, including passenger vehicles (PVs) and
two/three-wheelers (2W/3Ws), focussing on sales volumes growth.
believes the 28.4% sequential decline in the domestic auto sales volumes
(excluding CVs) in November 2021 was on account of a poor demand for
entry-level 2Ws and the semiconductor shortage for PVs. The overall production
and sales volumes decreased 26% yoy and 32% yoy, respectively, in November
PVs sales sequentially dropped 4.7% mom in November 2021 and fell 18.6% yoy, on
the account of the semiconductor shortage. This was despite a strong demand in
the market, as reflected by low dealership inventory levels of 10-15 days.
Domestic PV demand continued its shift towards utility vehicles (UVs), as the
segment’s sales grew 1.5% yoy owing to original equipment manufacturers’ (OEMs)
prioritisation of UV production over other PV segments. Export sales volume
grew 12% mom and 16% yoy.
2Ws sales declined 32% mom and 34% yoy in November 2021 owing to the continued
poor demand in entry-level segment especially in the rural market, increased
cost of ownership on account of price hikes by OEMs and increased fuel prices.
2W export sales declined 4.7% mom while growing 9% yoy.
believes that new model launches by OEMs in the segment, subsidy offered by the
government, as well as higher fuel prices will drive the sales for EVs in the
the festive season, retail sales for PVs and 2W fell 19% and 1% yoy owing to
the semi-conductor shortage in PVs and the low demand for entry-level 2Ws,
respectively; while 3W and CV volumes increased 67% and 13%, respectively.
line with Ind-Ra’s expectations, the industry
continued to record sequential declines in November 2021. Ind-Ra expects the
industry performance to remain affected in December 2021 as well, given the
supply-side challenges in the PV segment as well as low consumer demand in 2W
Sources: India Ratings And Research