Passenger vehicle sales record 26% growth in September

Our Bureau New Delhi | Updated on October 16, 2020

Expecting good demand in festive season starting Saturday: SIAM

Passenger vehicle (PV) wholesale sales in the domestic market grew by 26 per cent year-on-year (y-o-y) to 2,72,027 units in September as compared to 2,15,124 units in the corresponding month last year. This is the second straight month of sales growth in the segment.

According to the Society of Indian Automobile Manufacturers’ (SIAM) latest data, the wholesale sales of passenger cars grew by 29 per cent y-o-y to 1,63,981 units during the month as against 1,27,194 units in September last year.

Two-wheeler sales also rose by more than 11 per cent y-o-y to 18,49,546 units in September as against 16,56,658 units in the same month last year.

While motorcycle sales were up 17 per cent y-o-y at 12,24,117 units as against 10,43,621 units in September 2019, scooter sales were also up marginally at 5,56,205 units from 5,55,754 units in corresponding month last year.

“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,” Kenichi Ayukawa, President, SIAM said.

Mixed quarter

On a quarterly basis, PV sales increased by 17 per cent to 7,26,232 units from 6,20,620 units in the July-September period last year.

Two-wheeler sales during the quarter rose marginally to 46,90,565 units as compared to 46,82,571 units in the same period last year.

However, commercial vehicle (CV) sales saw a dip of 20 per cent during July-September at 1,33,524 units as compared to 1,67,173 units in corresponding period last year.

Vehicle sales across categories during the second quarter declined marginally to 55,96,223 units as compared with 56,51,459 units in the same period of 2019.

“In the second quarter, some segments have shown signs of recovery. PVs and two-wheelers are positive, although on a very low base of previous year. We are expecting good demand in the festive season starting Saturday. Thanks to government intervention, auto loan interest rates are below 8 per cent, the lowest in a decade and that should encourage customers to purchase new vehicles,” Ayukawa said.

However, according to analysts, volumes in the Indian automotive industry have been pushed back by almost 10+ years. For fiscal year 2021, volumes are expected to be down — for PVs by 22-25 per cent, two-wheelers by 16-18 per cent, for light CVs by 17- 20per cent and medium and heavy CVs by 35 -40 per cent.

The Indian automotive industry is battling tough times due to a general economic slowdown coupled with Covid-19 induced pandemic lockdowns, a recent ICRA report said. The ratings agency expects the GDP to decline by 11 per cent in fiscal year 2021, which will trickle down into lower demand for the automotive industry in general (except tractors).

Published on October 16, 2020

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