Festive season likely to lead to strong vehicles sales in October: SIAM
Riding on the back of strong festive season demand, passenger vehicle wholesales in India increased 92 percent to 3,07,389 units in September, as compared to the same month last year, auto industry body Society of Indian Automobile Manufacturers (SIAM) said
Riding on the back of strong festive season demand, passenger vehicle wholesales in India increased 92 percent to 3,07,389 units in September, as compared to the same month last year, auto industry body Society of Indian Automobile Manufacturers (SIAM) said on Thursday. Passenger vehicle (PV) dispatches from factories to dealerships in September 2021 stood at 1,60,212 units.
“The sentiments are positive now because COVID is behind, so people are very clear,” Vinod Aggarwal, President, SIAM said, adding that the sentiment is also reflected in buying of all assets or consumer durables.
Therefore, Aggarwal expects a good festive season, implying better prospects for the industry.
As per the latest SIAM data, two-wheeler sales rose 13 percent to 17,35,199 units, as compared to 15,37,604 vehicles in September 2021. Motorcycle sales rose 18 percent to 11,14,667 units, as against 9,48,161 units in the year-ago period.
SIAM president is eyeing an increase in passenger vehicle sales on a month-on-month basis. “Hopefully we should have a good season because October should be a big month because of Diwali and normally people buy more during this period,” he said.
He added that the chip shortage situation has eased quite a bit and so has global demand and there has also been a capacity expansion in the last few months.
Scooter sales were up 9 percent to 5,72,919 units last month from 5,27,779 vehicles a year ago. In the September quarter, PV sales increased by 38 percent to 10,26,309 units, as against 7,41,442 units in a similar period of the last fiscal.
Similarly, total two-wheeler sales rose 13 percent to 46,73,931 units, as compared with 41,36,484 units in the September quarter of the last fiscal. Total commercial vehicle sales rose by 39 percent to 2,31,880 units, as against 1,66,251 units in the year-ago period.
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Total sales across categories rose to 60,52,628 units, as against 51,15,112 units in the September quarter of last year.
Aggarwal, however, pointed to a lot of stress at the entry-level segment for two-wheelers. “The costs have gone up significantly because of the regulatory norms and a few other factors like insurance costs. That has impacted some sentiment at the entry level for two-wheelers,” he said.
Exports have seen a decline in September, quarter two and the first half of the year despite a continued rise in domestic sales. “It is clearly the impact of the situation with respect to the dollar strengthening,” he said.
For the full interview, watch the accompanying video
(with inputs from PTI)
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