According to data available with industry body Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales last month stood at 272,027 units, which is an increase of 26.45% over 215,124 units sold in the year-ago period. Two wheeler sales rose 11.64% to 1,849,546 units in the period under review.
NEW DELHI: The festive-season cheer is evident — at least on our roads. Indian car and bike makers reported their best monthly sales growth in about two years in September, with dealers stocking up popular models in anticipation of robust sales through the Navratras and Diwali.
Data from the Society of Indian Automobile Manufacturers (SIAM) showed that sales of passenger vehicles, which include sedans, compact cars and SUVs, rose more than a quarter on-year to 272,027 units. Car sales, a rough barometer of consumer confidence, would have been even higher at 31% if dispatches by Tata Motors (21,199 units in September 2020) were to be included. The Mumbai-based Tata Group company now reports its sales data every quarter instead of every month.
Two-wheeler sales rose 12% to 1,849,546 units in the period under review. Sales of three-wheelers declined 72% to 18,640 units in September. Automakers in India report wholesale dispatches from factories and not retail sales to customers.
Last quarter, passenger vehicle sales increased 17% to 726,232 units; two-wheelers improved marginally by 0.17% to 4,690,565 units. Wholesale volumes of commercial vehicles and three-wheelers, however, continued to remain weak, falling, respectively, by about a fifth to 133,524 units and 75% to 45,902 units). Movement of cargo and public transportation still face curbs in several parts of the country.
“The Indian automotive industry is working hard amidst this tough Covid-19 situation to increase production and sales while ensuring the safety of customers and employees across the whole value chain,” said SIAM President Kenichi Ayukawa. “In Q2, some segments have shown signs of recovery. Passenger vehicles and two-wheelers are positive, although on a very low base of the previous year.”
He agreed the sharp increase in wholesale volumes last month were on account of automakers building inventory ahead of the festive season, adding that this was ‘normal practice’ for the industry. Ayukawa said with interest rates at a decadal low and increased consumer preference for personal mobility solutions, automakers expect demand for cars and two-wheelers in the upcoming festive season.
“We expect good demand in the festive season starting tomorrow. Thanks to government intervention, auto loan interest rates are below 8%, the lowest in a decade and that should encourage customers to purchase new vehicles. Commercial vehicle and three-wheeler sales are still in the negative growth zone,” Ayukawa said.
To be sure, even as vehicle sales recovered sequentially, overall volumes across segments last quarter remain below levels last seen five years ago in 2016.
Industry leaders aren’t sure about the sustenance of demand beyond the festive season. “The pandemic is a unique situation and none of us have the experience of this. It is difficult to predict how demand will be beyond December 2020,” said Ayukawa.
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3 Comments on this Story
abhishek ranjan20 days ago
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RajeshK20 days ago
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Rahul Mundra20 days ago
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