Amid a poor demand for entry-level 2Ws (two-wheelers) and the semiconductor shortage for PVs (passenger vehicles), credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has showed the 28.4% sequential decline in the domestic auto sales volumes (excluding CVs) in November 2021. The overall production and sales volumes decreased 26% yoy and 32% yoy, respectively, in November 2021.
According to the report, domestic PVs sales sequentially dropped 4.7% mom (month on month) in November 2021 and fell 18.6% yoy (year on year), 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.
On two/three-wheelers front, the rating agency said that domestic 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, while domestic 3Ws sales continued to be low owing to a shift in consumer preference towards personal mobility and financing issues. The sales dropped 29.3% mom and 7% yoy in November 2021.
