UVs, 3-wheeler drive December auto sales

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The utility vehicles (UVs) and three-wheelers outsold in domestic wholesales during December 2021 on a year-on-year (YoY) basis, the monthly report shared by the Society of Indian Automobile Manufacturers (SIAM) said on Friday.

As per the latest data, the UV sales in December grew by more than 2 per cent YoY to 97,137 units during the month compared with 94,787 units in December 2020. Similarly, the three-wheelers sales grew by 25 per cent YoY to 28,111 in December against 22,476 units in the corresponding month previous year.

However, the passenger cars segment declined by 23 per cent YoY to 1,12,873 units during last month compared with 1,46,864 units in December 2020. This led to the decline of total passenger vehicles sales by a little more than 13 per cent to 2,19,421 units in December as against 2,52,998 units in December 2020.

The total two-wheeler sales also declined by 11 per cent YoY to 10,06,062 units during the month as compared with 11,27,917 units in December 2020, the SIAM data showed. While the motorcycles sales declined by more than 2 per cent to 7,26,587 units (against 7,44,237 units), the scooter sales fell by 24 per cent 2,46,080 units (against 3,23,757 units in December 2020).

“Third quarter sales including those of the festive season were not as per expectations. All segments are still behind by many years. Industry is working hard to maximise production and minimise the impact of supply constraints while ensuring safety of people in the entire value chain,” Kenichi Ayukawa, President, SIAM, said.

In December, the production of vehicles across categories had come down to 16,38,111 units as against 19,08,240 units in December 2020. And, with the spread of Covid-19 again across the country, the industry is working cautiously, said Ayukawa.

“Amidst the rising infection spread, Indian automobile industry is taking all necessary precautions in line with the government guidelines. As in the past, industry continues to stand with the government to support the country wherever possible,” he said.

PLI scheme

Talking about the recent announcement of the PLI scheme and as many as 115 companies from the automotive sector applying for it, Ayukawa added that the industry is looking forward to leveraging these schemes’ benefits for increasing localisation and exports.

Commenting on the overall impact in sales, Rajesh Menon, Director General, SIAM, said, “Demand of passenger vehicle (PV) segment was largely affected due to supply constraints while the two-wheeler segment was majorly impacted due to subdued demand. Sales of PV in the third quarter has been the lowest in five years, while for the two-wheelers it has been the lowest in nine years.”

Only the heavy goods segment in commercial vehicles have shown positive growth compared to Q3 of the previous two years. Sales of buses and three-wheelers continue to be a concern. Barring 2020, the sales of commercial vehicles in Q3 has been lowest in last five years and sales of three-wheelers, barring 2020, has been the lowest in last 13 years,” he added.

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