Country of Origin Analysis for the Indian Car Industry, May 2021. Korea & India increase their share
In the month of May 2021, the Indian Car Market sold about 1,03,343 passenger cars. The sales declined by a mammoth 64 percent in May’21 v/s Apr’21. This was primarily due to the lockdown in several parts of the country and maintenance shutdown at the majority of automakers.
The second wave of Covid has disrupted business operations severely in various parts of the country. While a varied degree of lockdown was announced by states where the cases were high; many OEMs decided to shut the manufacturing operations for a part of the month. Eg: Maruti Suzuki plants were shut from 1st to 16th May to support the Government in diverting oxygen for saving lives and also to keep its employees safe. Similar measures were taken by several other car manufacturers and had hit the production badly.
The Japanese OEM's share shrunk significantly due to the non-availablity of Maruti's production capacities. The share shrunk significantly to a low of 36%.
The Korean manufacturers, primarily Hyundai and Kia managed the production cycle better and were able to garner 35% market share, this is their all-time high share in India.
The Indian OEM's lead by Tata & Mahindra also had their best-ever month in a long time and managed a handsome 22% share of Indian car sales.
The other OEM and their foreign collaboration: Italians/Germans/Czech/US/China, make up the balance numbers; and have still to mount a serious challenge.
The Korean Manufacturers have shown the highest growth with a 12% gain over Last year May 202. followed by 4% by the Indian OEMs. The highest degrowth came from Japanese manufacturers with a drop of about 8% for the month of May 2021 against May 2020.
With the production cycle getting enhanced this month and the production volumes coming back to normal this month, June is expected to be a month of a strong coming back for Maruti, which intern shall balance out the contribution of Japanese OEMs in India. Rest we shall continue to see a consistent rise in the contribution of Indian manufacturers since Tata Motors and Mahindra continue to add volumes by the day and enhance their share in the Indian car market.