Mr Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research Ltd. Auto Sales Nov'21
The weakness in domestic demand for PV segment continued in Nov'21 as reported by the top 14 PV players in India. The volumes recorded a contraction of 14.4% YoY during Nov'21 primarily due to production challenges across the PV sector due to a persisting global shortage of semiconductors.
Going ahead, the shortage of semiconductors and a continuing weakness in rural demand may keep the PV volume trajectory muted over the next few months.
The demand in overall 2W sales volumes in Nov'21 also continued to remain weak as reflected by the volumes of the top 5 players in the industry. The total sales declined 28.4% YoY mainly accounted by the 35.9% drop in domestic despatches during the same period.
We expect that the recent cut in fuel taxes, better personal mobility due to lower threat of the pandemic along with the progress in vaccinations will lead to an improvement in consumer sentiment in the 2W market.
After witnessing positive traction in last couple of months, the total domestic CV sales declined by 3.9% YoY during Nov'21. However, the market leader in the segment i.e. Tata Motors registered growth in sales of 7.9% YoY along with VECV which registered growth of 2.0% YoY during the period.
We, nevertheless, believe that the overall demand for CVs will strengthen over the near to medium term as industrial activity along with the momentum in both public and private sector capital expenditure is gradually picking up.