May 24, 2022

Alice-in-chains

Automotive forever

Indian auto field reveals resilience in Q4 FY2021

FY2021 has been just one of the hardest decades in the heritage of the Indian automotive sector, with the outbreak of the COVID-19 pandemic putting a spanner in the performs. The car marketplace, which was previously struggling with headwinds of a slowing economy, was introduced to a standstill with the nationwide lockdown in April 2020. And this April, the pandemic when all over again threatens to spiral out of control. However, gross sales in Q4 of FY2021 have been encouraging for the market. 

Whilst the Indian automotive market closed FY2021 with an total (throughout segments) calendar year-on-calendar year profits decrease of 13.6 per cent and registered cumulative profits of 18,615,588 units (FY2020: 21,545,551), the earlier couple months have been comparatively much better with Q4 FY2021 registering an uptick of 25.89 % with complete gross sales of 5,583,149 units (FY2020: 44,34,934).

Passenger car revenue in FY2021 (27,11,457 units / -2.24 %)

The passenger motor vehicle segment was strike tricky with cumulative revenue slipping to 27,11,457 units (FY2020: 27,73,519 / -2.24 p.c). The largest impression was felt by passenger autos and vans, which clocked 15,41,866 units (16,95,436 / -9.06 %) and 1,08,841 units (1,32,124 / -17.62 per cent), respectively. Having said that, the utility autos (UVs) emerged as a preserving grace, registering a net YoY uptick of 12.13 percent and sales of 10,60,750 models (9,45,959). Curiously, UV profits crossed a million models in a solitary calendar year for the to start with time, enough evidence of the surging demand for this automobile segment.

New-model launches could be attributed to have performed a huge function in driving this growth, wherein the want for safer individual mobility coincided with these brand name-new offerings entering the marketplace. The Hyundai Creta, Kia Sonet, Mahindra Thar and the Nissan Magnite are some of the UV styles introduced past calendar year that ended up in the news for all the proper explanations.

Even so, though the PV segment was impacted by the pandemic on an once-a-year foundation, its efficiency in Q4 FY2021 was particularly outstanding, with sales among January and March 2021 registering a potent YoY uptick of 42.40 p.c and recording sales of 9,33,583 models (Q4 FY2020: 6,55,599).

Advancement outlook for FY2022

So, as the Indian automotive marketplace will get down to bolster its attempts of recovery even amidst mounting issues of a next wave of the COVID-19 pandemic, there is a probability of FY2022 emerging as a substantially superior 12 months for the market overall. Even now, no organization expert would now hazard a guess on the lengthy-time period sector outlook.

“The Indian auto market carries on to get the job done hard amidst problems of a second COVID-19 wave, to maximise production and revenue, although ensuring safety of its folks, associates and consumers. We would like to thank and compliment the authorities for a significant nationwide vaccination travel and also for letting vaccination of our employees in the manufacturing facility premises,” stated Kenichi Ayukawa, president, SIAM, in a push statement.

“On the product sales front, a deep structural slowdown in the market even prior to the pandemic, put together with the effect of the pandemic in 2020-2021, has pushed all car segments again by several many years. Recovery from listed here will need time and attempts by all stakeholders. There is continue to uncertainty in the worth chain owing to semiconductor scarcity, fresh new lockdowns and escalating raw materials selling prices. In an atmosphere of uncertainty, alternatively of hoping to forecast the future, we will all get the job done challenging to build it,” Ayukawa concluded.

Also see:

Kia, Hyundai, Tata achieve utility automobile industry share in FY2021

New automobile, SUV sales end FY2021 on a high be aware