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The Calendar Year 2021 registered itself as the 3rd best year for the Indian passenger vehicle (PV) market, after 2018 and 2017, when sales crossed the 30 lakh mark for the third time. What started as pent-up demand in mid-2020, in the post lockdown period, has turned into strong demand and helped the passenger vehicle industry to achieve V-shaped recovery. However, the same comfort was not witnessed by the 2-wheeler industry in India. Demand remained strong for successful product lines of PV manufacturers, with some products enjoying a long waiting list (Hyundai Creta, Mahindra Thar, XUV700, et al).
Key Highlights of CY 2021 -
Indian passenger vehicle sales crossed the 30 lakhs mark again in 2021 (after 2017 and 2018)
Semiconductor shortage disrupted supply chain in the second half of 2021
Maruti lost 5.6% market share and Tata Motors gained 3.8% market share
SUV/Crossover body styled products captured 38% of market share
Maruti Baleno (+ cross badged Toyota Glanza), with a combined sales of 1,98,563, is the best-selling product in 2021
February and March month of 2021 became the two best months of vehicle sales in Indian PV market history, October 2020 still remains the best (3,33,625 units). Then came the 2nd COVID wave in India forcing the State Governments to impose partial or full lockdown, thus affecting production and the sales of vehicles in the month of April and May. Rapid recovery started in July, once lockdown was lifted, that is when the semiconductor shortage hit the Indian PV market hard. Semiconductor shortage completely disrupted the festive period. Purchasing departments across the industry were struggling to secure semiconductors supply globally. Tata Motors has remained the only exception in 2021.
Manufacturers/OEM wise Performance for CY2021 -
The Top 5 manufacturers command 84% of the Indian PV market
Every brand (except Datsun) recovered from the low of 2020
Maruti and Hyundai’s unchallenged 67% market share dominance over the years came down to 60% in 2021
Tata Motors posted its historical best numbers in 2021, on account of the success of products and better management of semiconductors than others
Nissan India jumped 5 ranks backed by the success of Nissan Magnite launched in late 2020
Thar launched in late 2020 has added a large chuck to Mahindra’s annual sales
Tata Motors has witnessed a strong gain in market share due to strong sales of Nexon and Altroz
Toyota’s market share increase is largely due to the addition of Urban Cruiser (cross badged product from Maruti) and production recovery of Innova and Fortuner
Magnite has resurrected Nissan back in the Indian market
Next-generation Thar is a major contributor to Mahindra’s market share growth
Maruti witnessed a steep drop in market share in absence of a proper SUV portfolio and diesel engine
Also, drop in Dzire and Alto’s sales has badly impacted Maruti’s market share
Hyundai’s market share drop is largely due to loss of traction in the hatchback segment
2021 Manufacturers in focus – Ford, Tata and Nissan
Ford motors has decided to exit the Indian mass-market vehicle segment in 2021 due to piled up losses and the collapse of JV with Mahindra
Right product (attributes that meet or exceed customer/consumer’s need) at the right price has given new lease of life to Tata and Nissan in India, the key is to sustain in a fiercely competitive scenario