Total domestic passenger vehicles (PVs) wholesale grew by 185 per cent year-on-year (YoY) to 2,51,052 units in May, as compared with 88,045 units in corresponding month last year.
The low base was due to the Covid-19 second wave and lockdown imposed by various States.
Two and three wheeler sales
The two-wheeler sales also grew by 253 per cent YoY to 12,53,187 units during the month against 3,54,824 units in May 2021, the monthly report shared by Society of Indian Automobile Manufacturers (SIAM) said on Friday.
The total three-wheelers sales grew exponentially at 28,542 units in May as compared with 1,262 units in same month last year.
However, the monthly sales of two-wheelers and three-wheelers are still behind as compared to their sales years ago.
“Sales of two-wheelers and three-wheelers continue to remain sluggish in May, as they are even below of what it was nine years and 14 years ago, respectively. Sales of passenger vehicle segment are also still below 2018 level," Rajesh Menon, Director General, SIAM said.
The recent government interventions would help in easing of the supply side challenges, but second hike in repo-rates by RBI and increase in third-party insurance rates, could become more challenging for the customers, thereby impacting demand, he added.
The total sales across categories grew by 245 per cent YoY to 15,32,809 units during last month as compared with 4,44,131 units in May 2021.
According to Reliance Securities, few segments also witnessed month-on-month improvement, indicating gradual improvement in industry volume. Rural also started witnessing initial recovery ahead of likely normal monsoon.
“Scooters and MPV (vans) segment reported strong growth of 6-7x, while SUV growth was relatively low at 160 per cent due to high base. Overall industry volume would continue to witness improvement though at slower pace in coming months. Likely ease on semiconductor supply would ramp up production in second quarter of this financial year, while commodity cost inflation would maintain pressure on margins in the first quarter,” it said.