Auto sales continue to grow in the month of July with growth in the PV and CV segment outperforming the growth in other segments like 2-wheelers and tractors.

Here is the broad sense of performance in various segments:

Passenger Vehicle – Demand was led by a preference for personal mobility, while inventory levels also remained low in the system. PV leader Maruti Suzuki sold 1.6 lakh units in July, up from 1.5 lakh units that were sold the previous month. Tata Motors sales were better than estimates with 54k units sold by the company in the month of July, a growth of 24% over last month where Domestic PV sales were up 25% MoM. M&M Automotive sales were up 30% on MoM basis at 43k units sold by the company.

Tractor– Sales were hit due to seasonally weak month due to slowdown in monsoon activity but sales are still up on a YoY basis. M&M tractor division sales were down 44% on MoM basis at 27.3k units. Escorts sold 6.5k units in July, down from 12.5k units sold in the month of June 2021.

2-wheelers– Growth continue to be a laggard and numbers reported by companies were even below what the street was expecting however exports in this segment continue to hold strong. Hero Moto Corp sold 4.5lakh units in July, while TVS Motors sales were up 11% on MoM basis at 2.8lakh units. Bajaj Auto Sales was up 7% MoM with exports getting back 2 lakh of monthly sales data. While Eicher Motors Royal Enfield sales were just up 2% MoM at 44k units in the month of July.

Commercial Vehicle– Segment witnessed good YoY and MoM growth but it is still below its pre-pandemic levels of sales and analysts expect the segment to witness a good recovery toward Q2FY22. Eicher Motors VECV sales were better than the estimate at 4,271units, up 75%MoM. Ashok Leyland sales were up 81% on a YoY basis and 34% up on MoM basis at 8,650 units sold in July.

For the auto industry, demand continues to hold strong but many dealers have highlighted supply chain constraints and also that commodity inflation continues to put pressure on the margins.