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Auto sales fall for Nov 2021, Tata Motors makes an exception

Auto sales fall for Nov 2021, Tata Motors makes an exception

Sales of most Indian automakers fell in November, following a surge in sales the preceding month. The dip in sales is attributed to the ongoing global shortage of semiconductor chips and poor rural demand.

Tata Motors was the only exception, reporting yet another month of profitable sales figures. Tata Motors was the only exception, reporting yet another month of profitable sales figures.

Sales of most Indian automakers fell in November, following a surge in sales the preceding month. The dip in sales is attributed 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.

Tata Motors was the only exception, reporting yet another month of profitable sales figures. The auto major's total vehicle sales surged by 21 per cent. Tata Motors results were profitable in all the auto segments, with Passenger Vehicles (PV) and Commercial Vehicles (CV) recording a sales growth of 38 per cent and 15 per cent, respectively. 

In sharp contrast, auto major Maruti Suzuki's total sales fell 9.16 per cent to 139,184 units in November 2021 as against 153,223 units in November 2020. Maruti's sales in PVs reported a 19 per cent fall, and CVs had a marginal increase of 3 per cent. 

Mahindra & Mahindra Ltd.'s total sales decreased by 2 per cent as compared to November last year. The company's sales in PVs increased by 7 per cent, while sales in CVs dropped by 23 per cent. 

Besides these, Chennai-based TVS Motor Company reported a 14 per cent decline in total sales. The company's sale of three-wheelers increased by 32 per cent, its sale in two-wheelers decreased by 18 per cent.

Bajaj Auto also saw a decrease of 10 per cent in total sales. Its sales in the PV segment experienced a dip of 23 per cent, whereas the CV sales increased by 29 per cent.
 


Tractor industry 

Escorts Agri Machinery in November 2021 recorded a sales drop of 30 per cent year-on-year. It sold 7,116 tractors against 10,165 tractors sold in November 2020. Domestic tractor sales in November 2021 were at 6,492 tractors as against 9,662 tractors in November 2020. 

"The drop in sales was due to a temporary phenomenon, and cash flows should start improving soon as kharif harvest gets fully monetised," Escorts Machinary said in a statement. 

Going forward all macroeconomic factors remain in favour of the tractor industry, it added.

Further, sales of Ashok Leyland decreased by 2 per cent year-on-year. It sold 10,480 units against 10.659 units in November 2020. Further, the domestic sales fell by 4 per cent YoY. 

Although, Eicher Motors' total sales increased by 10 per cent in November YoY, the company's domestic sales had a marginal increase 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. Further, the 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.