India’s car market is bouncing back. Year-on-year (y-o-y) passenger vehicle sales in India grew by 23% in February.
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, says that India has ‘overcome the COVID-19 blues’.
Agwan notes that all OEMs, except Ford and Skoda, witnessed y-o-y increases in their sales volumes last month. He cites positive consumer sentiment but also the launch of feature-loaded vehicles.
“We are seeing the greater availability of several affordable variants across major customer segments,” he says. “People want safer vehicles and we are witnessing an increasing inclination towards personal mobility. Mass market cars such as Swift, Baleno, Wagon R, Alto and Dzire were on the top list.”
Agwan also notes that SUVs are doing well, including the 2020 launched Creta and sub-compact Venue and Vitara Brezza also made it to the top 10 list in February 2021.
Tata with bolstering sales of Nexon SUV, Altroz and Tiago hatchback topped the sales growth chart with 119% y-o-y increase.
However, he warns that semiconductor shortages could impact the picture in the coming months.
“Chip shortages slightly impacted the supply for India-bound OEMs and this could affect production for both domestic sales and exports over the next few months,” Agwan says. “In addition, the increase in fuel prices will be a factor restraining sales growth to a certain extend but not enough to wash-off the boost created by attractive line-up that is recently or to be launched in the country.
“Nevertheless, launches such as Renault Kiger, Swift 2021, Tata Safari, Hector 2021, Citroen C5 Aircross and others will add significant volumes in the upcoming months.”