Passenger vehicle sales in fast lane

Passenger vehicle (PV) sales in India rose significantly year-on-year in July, as Covid-led restrictions eased across States and companies pushed stocks to dealers to build up inventories for the upcoming festive season, SIAM said on Thursday. The total passenger vehicle sales including dispatches of cars, utility vehicles and vans from OEMs to dealerships increased by 45 per cent to 2,64,442 units in July against 1,82,779 units in the same month last year.

According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches from the OEMs to dealerships, however, declined by two percent to 12,53,937 units in July, compared to 12,81,354 units in the year-ago period. Motorcycle sales were at 8,37,096 units last month as against 8,88,520 units in July 2020, down six per cent. Scooter dispatches, however, increased 10 per cent to 3,66,292 units from 3,34,288 units. Similarly, three-wheeler wholesales surged 41 per cent to 17,888 units last month as against 12,728 units a year ago. The total sales across categories, excluding commercial vehicles, stood at 15,36,269 units compared to 14,76,861 units in July last year. SIAM Director General Rajesh Menon noted that the domestic auto industry continues to face heavy headwinds in the form of global semi-conductor shortages and a steep rise in commodity prices.

"On one hand, the industry is managing such supply chain challenges while ensuring the safety of its people, and on the other hand, the industry is also keeping a close eye on the onset of the third wave in India and across the world." "Amidst such a challenging and uncertain business environment, the industry is trying to maximise production and sales," he stated.

However, sales during April to July 2021 for the passenger vehicle segment are still lower than the level of 2016-17; for the two-wheeler segment, still lower than the level of 2010-11; and the three-wheeler segment has been pushed back by many years, Menon noted.