Passenger Vehicle Sales Rose For The Second Straight Month In September: SIAM Data
Recovery during the festive season is crucial for auto industry as it was battered by a slowdown even before the pandemic hit.
Factory-gate shipments of cars and utility vehicles rose for the second straight month as automakers pushed more stock to dealers anticipating an increase in demand ahead of the festive season, and on low base.
Domestic wholesales of passenger vehicles rose 26.45% year-on-year to 2,72,027 units in September 2020, according to data released by Society of Indian Automobile Manufacturers. While car sales rose 28.92% over the year ago to 1,63,981 units, sales of utility vehicles jumped 24.50% to 96,633 units—the third straight month of uptick.
Total two-wheeler sales, too, rose in September.
That comes as India, fighting the worst economic downturn in decades, restarted most activities in an effort to revive sentiment and growth in the aftermath of the world’s strictest coronavirus lockdown. Recovery during the festive season is crucial for the auto industry as it was battling a slowdown even before the pandemic that stalled production and washed out sales.
“Passenger vehicles and two-wheelers are positive, although on a very low base of previous year. We are expecting good demand in the festive season starting tomorrow. Thanks to government intervention, auto loan interest rates are below 8%, the lowest in a decade and that should encourage customers to purchase new vehicles,” Kenichi Ayukawa, president at SIAM, said at a press briefing. “The Indian automotive industry is working hard amid this tough Covid-19 situation to increase production and sales, while ensuring the safety of customers and employees across the whole value chain.”
While sales revived for other segments, commercial vehicles continued to remain under pressure. SIAM now releases such sales only quarterly. Commercial vehicle sales, according to Rajesh Menon, director general at the automaker’s lobby, fell 20.1% year-on-year in the July-September period.
Auto sales in September 2020: Segment-wise breakup (year-on-year)
Scooter sales stood at 5,56,205 units against 5,55,754 units a year ago.
Motorcycle sales rose 17.30% to 12,24,117 units.
Total two-wheeler sales rose 11.64% to 18,49,546 units.
Total three-wheeler sales slumped 71.91% to 18,640 units.