India in all likelihood, by end of the month, will record the highest half-yearly sales for the passenger vehicles segment amidst all the component shortages and high inflation that affected the production.
With time rising demands and customers’ inclination toward personal mobility, experts are eyeing around 1.8 million units of cars, utility vehicles, and vans sales in mid-2022. The latter half of the year seems secured looking at the current orders the automakers have in the hand of more than 7,50,000 units.
The industry for the first time, after having sold 9,20,661 units in the January-March quarter expects sales of more than 9,00,000 units each in the two consecutive quarters.
Automakers believe that this kind of high demand will continue for a good time considering the fact that there were no purchases made in Covid times. Maruti Suzuki India stands with more than 3,00,000 units pending orders and is expecting a healthy inflow of inquiries and bookings for now.
A benefit to the automakers in terms of better margins is that the sales for midsize and premium vehicles are hitting record highs in comparison to the low-margin entry-level cars. Figures suggest that the prices of the vehicles over Rs 10 lakh constitute 37 percent of the total sales which is nearly 3 times to what it was 3-4 years ago.
Ravi Bhatia, president at JATO Dynamics said, “The supply chain situation concerns, particularly with respect to semiconductor and other component shortages, seem to be receding still the models with top demand continue to have a significant waiting period. This has resulted in limited incentives to buyers from dealers. The average inventory of passenger vehicles currently is around 146,000 units, as against the norm of 280,000-290,000 units.”
Vinkesh Gulati, President, Federation of Automobile Dealers Association said, “Healthy bookings and single-digit cancellations show that demand may stay put even when normal supply resumes in the months to come. We are likely to have our best-ever year (for passenger vehicles).”
The automobile industry, for now, is showing positive sales growth signs and has managed to make a convincing recovery compared to the previous years. Automakers Maruti Suzuki, Tata Motors, Mahindra, and Kia are among the others who have been reporting year-on-year as well as month-on-month sales growth.