Passenger vehicle makers have been reeling under the impact of semiconductor shortages in FY22. Lockdown restrictions imposed by state governments in April-June 2021 hit retail sales, but there was a recovery from July 2021 as pent-up demand from customers drove sales at dealers. Demand also recovered with new launches. 

Another major concern however was the long wait times for new vehicles due to supply-side constraints for carmakers. Still, Q2FY22 saw retail sales of passenger vehicle sales reach pre-Covid levels. Mahindra & Mahindra’s retail sales were helped by the launch of its XUV700 with its aggressive new design. It became the vehicle with the longest waiting period, and received more than 1.6 lakh bookings in Q2FY22. With one more launch lined up in FY22, the company is hoping for more of the same. 

Maruti Suzuki’s strong brand presence and distribution network led to an increase in retail sales in Q3FY22. Except for a brief period in September 2021 and October 2021, sales were on a rising trend. Tata Motors retail sales are rising after a lull in Q2FY22. This is despite its wholesales rising 56.3% YoY to 1.7 lakh units in Q2FY22.

Mahindra & Mahindra’s wholesales dipped to 17,722 units in December 2021 from 19,458 units a year ago, which dovetails with a marginal rise in retail sales over the month. It will be interesting to see if wholesale dispatches to dealers continue to translate into retail sales at a fair clip as the third wave might lead to curbs on discretionary expenditure. The elevated fuel prices and supply-side issues may also impact demand for cars in Q4FY22.