Tuesday, December 5, 2023

Passenger vehicle sales surge 14.19% in October: SIAM


Passenger vehicle sales in Indian domestic market in October 2020 grew 14.19% to 310,294 units in October 2020, as compared to 271,737 units sold in the same month a year ago, reports Society of Indian Automobile Manufacturers (SIAM).

The wholesale numbers of the passenger vehicle sales do not include Tata Motors’ data, as the homegrown automaker reports its data to SIAM on a quarterly basis.

In the passenger vehicle sales, numbers have increased across all sub-segments and UVs have outperformed other segments thanks to the launches of new models and variants alongside higher consumers preference for the same. Besides that, resolved supply chain issues too have helped the OEMs to produce in line with anticipated demand.

The total two-wheeler domestic sales last month reported 16.88% growth at 2,053,814 units, as compared to 1,757,180 units in October 2019. Motorcycle sales grew 23.80% last month to 1,382,749 units as compared to 1,116,886 units in October 2019. On the other hand, scooter sales recorded a marginal growth of 1.79% to 590,507 units as compared to 580,120 units sold in the same month in 2019.

The three-wheelers sold 26,187 units in October 2020, down 60.91% from 66,985 units sold in the same month a year ago. The number includes both passenger and goods carriers.

The auto sales data in October 2020 marked a significant growth as compared to the previous months of the current financial year, driven by the festive season demand and pent up demand. However, analysts forecast the overall YoY sales in this fiscal will drop significantly. Also, post the festive season, demand in the auto sector is likely to be mooted, as the automaker and several analysts predict.

Commenting on the October 2020 data, Rajesh Menon, Director General, SIAM, said that October 2020 registered continuity in sales growth trajectory, drawing on from the previous month. There were marked improvements witnessed across certain segments due to very good festive demand. “October wholesale numbers have been good on account of dealers preparing to serve demand for the upcoming Diwali festival, which is in November this year,” Menon added.

According to Shruti Saboo, Associate Director, India Ratings & Research, the passenger vehicle sales and 2W sales continued to show an upward trend. “This mainly reflects the start of festive season (Navratri) in October and OEMs trying to maintain adequate stock for sales anticipated in November during Diwali time. The shift towards personal mobility during this pandemic continued to support sales in both PV and 2W segments. In 2W, motorcycles continued to outperform scooters which shows higher demand coming from rural and semi-urban markets.”

She also added, “While CV & 3W are showing sequential improvement, the recovery is much lower than 2W & PV. CV could take longer to recover due to their dependence  on economic activities, which has not yet fully revived. Moreover as people are avoiding public transport, 3W could also take longer.”

Toyota Kirloskar Motor Regional Stockyard in Guwahati passenger vehicle sales

FADA reports gloomy picture

Meanwhile, on Monday, Federation of Automobile Dealers Association (FADA) shared the sales data for October. According to the data released by FADA, all the segments except tractor were in red last month.

According to passenger vehicle sales data released by FADA, 2,49,860 units were registered last month, down 8,80% from 2,73,980 units of October 2019. Two-wheelers reported 26.82% YoY decline in retail sales, at 10,41,682 units, as compared to 14,23,394 units as of October 2019.

FADA also reported that the three-wheeler segment recorded 64.50% decline in vehicle registration at 22,381 units last month, as compared to 63,042 units recorded in the same month a year ago. Commercial vehicle sales have been most affected due to the prolonged economic crisis and lately the Covid-19 pandemic as well. The segment recorded a 30.32% decline at 44,480 units in October 2020, as compared to 63,873 units from the year ago month.

Despite the stressed auto industry across all segments, the tractor category has been performing well, even during the lockdown as well, due to the good monsoon and lower impact of the pandemic in the rural markets. This has resulted in the tractor segment recording its sales numbers in green. In October 2020 as well, the segment recorded 55.53% growth, as FADA reported. 55,146 units of tractors were sold last month, as compared to 35,456 units sold in October 2019.

Also Read: SIAM shifts CV sales data release strategy, switches to quarterly sharing

Team AFT
Team AFThttps://autofintechs.com
The jack of all trades behind the Autofintechs.com


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