The number of passenger vehicles dispatched to distribution centers doubled in May.
According to the Society of Indian Automobile Manufacturers (SIAM):
Due to the Corona impact, the total sales of passenger vehicles in May 2021 was only 88,045. In this context, passenger vehicle sales more than doubled to 2,51,052 in May this year as economic activity has returned to normal.
Similarly, two-wheeler sales increased to 12,53,187 units from 3,54,824 units in the year-ago period. In addition, sales of three-wheelers, including auto, saw a significant increase from 1,262 to 28,542.
Total sales, including passenger vehicle (PV), two-wheeler and three-wheeler, stood at 15,32,809 in May this year. Siam, meanwhile, reported sales of only 4,44,131 in May last year, when corona damage hit hardest.
Rajesh Menon, Director General of SIAM, said:
Vehicle sales were down sharply last year due to the Corona impact. Therefore, although it is said that sales are relatively high at present, it does not reflect the true situation. Sales of two-wheelers and three-wheelers in May this year were at nine-year and 14-year lows, respectively.
Similarly, passenger vehicle sales are still lower than in 2018.
The recent intervention of the Central Government will greatly help to address the challenges posed by the supply chain. However, the RBI raised repo rates for the second time, including a third NPA premium increase, which has become a major challenge for customers. This, in turn, will create an impact on demand.
Total auto production of motor vehicle manufacturers (excluding BMW, Moscidis, Tata Motors, Volvo Auto), including two-wheelers, three-wheelers and quadricycles, stood at 19,65,541 units in May. This is up from 8,08,755 in May 2021. This was due to the disruption caused by the second wave of the corona that then spread.
Federal intervention will greatly help to address the challenges posed by the supply chain. However, the RBI raised repo rates for the second time, including a third NPA premium increase, which has become a major challenge for customers. This, in turn, will create an impact on demand.