PV sales log 4.87% on-year decline in March, Maruti Suzuki segment leader: FADA

Total 2,71,358 passenger vehicles were sold in March this year compared to 2,85,240 last year, according to Federation of Automobile Dealers Association (FADA). This indicates a 4.87 per cent on-year decline in PV sales, as per the data.

FADA President Vinkesh Gulati notes that passenger vehicle segment sees high demand met with low supplies in March this year due to semi-conductor shortage, Russia-Ukraine war and China lockdown.

Gulati says, “PVs continue to see high demand and long waiting period as semiconductor availability still remains a challenge even though supplies slightly improved from previous month. The Russia-Ukraine war and China lockdown will further dent supplies and hence press brakes on vehicle availability thus making waiting period more frustrating for customers.”

Maruti Suzuki emerged as the segment leader in terms of sales with 1,11,466 units sold in March this year versus 1,31,233. It was followed closely by Hyundai Motor India (40,567); Tata Motors (36,419); Mahindra and Mahindra (22,384); Kia Motors India (17,144) and Toyota Kirloskar Motor (10,471).  

FADA said in its near-term outlook that April will report muted growth across segments due to the impact of the COVID-19 lockdowns imposed in April 2020 and April last year. It also added that the uncertainty around crude oil prices, rise in fuel prices and increase in raw material costs can also impact the prices of vehicles.  

While demand in the PV segment will report no impact on demand, the two-wheeler segment is likely to report decline in demand since it is an extremely price sensitive market.  

FADA underscored, “The near-term outlook for Indian auto industry continues to remain a challenge as the on-going Russia Ukraine war and China lockdown does not hint towards a smooth path. Crude is on a boil and hence fuel prices have been raised by around Rs 10. This will continue to rise and further hit sentiments on lowering the spending.” 

It also noted, “Along with this, increase in raw material costs have made OEMs increase the prices of their vehicles. While no dent in terms of demand has been sent in PV segment, it will definitely have its impact on 2W segment which is an extremely price sensitive market.”