India Ratings and Research (Ind-Ra) has published the January 2021 edition of its credit news digest on India’s auto sector. The report highlights the trends in the sub-segments of the auto sector, including passenger vehicles (PVs), commercial vehicles (CVs) and two/three-wheelers (2W/3Ws), with a focus on sales volumes growth, market share movement, change in commodity prices and recent rating actions.
The domestic automobile industry (excluding CVs) reported sales volumes growth of 5% yoy in January 2021, led by 11% and 7% yoy growth in PVs and 2Ws sales volume, respectively. Improving consumer sentiments amid the roll-out of COVID-19 vaccines coupled with new launches have helped the PV segment, in particular, to continue the sequential growth trend in January 2021. 2W sales have been lower than that for PVs, impacted more by the price hikes taken by original equipment manufacturers (OEMs). 3W sales, declining 57% yoy, are yet to see an uptick in demand in India, since the onset of the pandemic in March 2020.
PV retail sales volume, although down 4% yoy, continued the month-on-month growth trend in January 2021, up 4% from December 2020. Incidentally, retail PV sales continued to be better than the wholesale sales in January 2021, indicating positive consumer sentiments despite the price hikes in January 2021 to partly counter the increasing input costs. 2W demand, on the other hand, seemed to be impacted more by this corrective measure. After recording 1.4 million registrations in December 2020, as customers chose to pre-buy 2Ws ahead of the announced price hikes from January 2021, retail registrations in January 2021 dropped a whopping 18% over December 2020. CV retail sales volume, albeit still a far cry from pre-covid levels, continued the upward trend, up 9% mom in January 2021.
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