Automobile dispatches to dealers jumped 10.6% in 17,06,545 units in July, aided by increased production following improved semiconductor availability. However, the markets for entry-level passenger cars, two-wheelers and three-wheelers are yet to recover, ahead of the festive season, according to the Society of Indian Automobile Manufacturers (SIAM).
“In July 2022, sales in the passenger vehicle segment stood at 2.9 lakh units; two-wheelers [clocked] 13.8 lakh units and three-wheeler sales were 31,000 units,” Rajesh Menon, director general, SIAM said.
Mr. Menon added that sales of two-wheelers in July were still below July 2016 numbers and sales of three-wheelers were lower than seen in July 2006.
“Third hike in a repo-rates in a row, to rein in high inflation, will make auto loans costlier, making it more difficult for entry level vehicles to recover,” he said, adding that the government’s recent decision to allocate higher amounts of domestic gas for the CNG segment will significantly bring down the input cost of gas companies.
“We hope that in line with the Government’s intent, the gas companies would pass on the entire benefit to the end consumers by reducing retail CNG prices,” he added.
Sales of passenger vehicles in July 2022 grew 11.1% to 293,865 units from a year earlier. The production of these vehicles expanded 7.6% to 358,888 units.
While wholesales of cars were 143,522 units (130,080), utility vehicles sales were 137,104 (124,057) and van sales came to 13,239 (10,305 units).
SIAM’s data does not include sales data of BMW, Mercedes, Tata Motors and Volvo Auto. Wholesale data for commercial vehicles is also not included.
In July 2022, total two-wheeler dispatches grew 10% 13,81,303 units. While scooter sales rose to 4,79,159 units (3,73,695), motorcycle sales increased to 8,70,028 (8,37,166 units).
Sales of three wheelers grew to to 31,324 units (18,132).
For all the latest business News Click Here
