Sales of most Indian automakers fell in November after a surge in sales the previous month. The decline in sales is due to the ongoing global shortage of semiconductor chips, poor rural demand, and the delayed harvest of kharif crops due to late monsoon rains affecting rural cash flows.
Another month of profitable sales figures was reported by Tata Motors. The auto major's total vehicle sales increased by 21 per cent. In all the auto segments, Tata Motors had profits of 38 percent and 15 percent, with Passenger Vehicles PV and Commercial Vehicles CV having a sales growth of 38 per cent and 15 per cent.
In November 2021, Maruti Suzuki's total sales fell by 9.16 per cent to 139,184 units, compared to 153,223 units in November 2020. Maruti's sales in PVs fell 19 per cent, and CVs had a marginal increase of 3 per cent.
Mahindra Mahindra Ltd.'s total sales decreased by 2 per cent compared to November last year. Sales in PVs increased by 7 per cent, while sales in CVs dropped by 23 per cent.
TVS Motor Company in Chennai reported a 14 per cent decline in total sales. The company's sale of three-wheelers increased by 32 per cent, while the sale of two-wheelers decreased by 18 per cent.
Bajaj Auto saw a decrease of 10 per cent in total sales. Sales in the PV segment decreased by 23 per cent, while CV sales increased by 29 per cent.
Tractor industry is a tractor industry.
Escorts Agri Machinery recorded a loss of 30 per cent year-on-year in November 2021. In November 2020, it sold 7,116 tractors against 10,165 tractor sales. In November 2021, tractor sales were 6,492 tractors compared to 9,662 tractors in November 2020.
Cash flows should start improving soon as kharif harvest gets fully monetised, according to Escorts Machinary, who said the drop in sales was due to a temporary phenomenon.
It added that all macroeconomic factors remain in favor of the tractor industry going forward.
Sales of Ashok Leyland decreased by 2 per cent year-on-year. In November 2020, it sold 10,480 units against 10.659 units. Domestic sales fell by 4 per cent YoY.
In November YoY, Eicher Motors'total sales increased by 10 per cent, but the company's domestic sales increased from 3,088 units in November 2020 to 3,184 units in November 2020.
Sales of Ashok Leyland decreased by 2 per cent YoY. It sold 10,480 units against 10,659 units in November 2020. Domestic sales fell by 4 per cent YoY.
Mahindra Mahindra Ltd. reported a 15 per cent decline in total tractor sales at 27,681 units in November 2021 against 32,726 units in the same month last year.