According to data available from the trade association Society of Indian Automobile Manufacturers (SIAM), a staggering 275,788 passenger cars were sold last month, which is a 19% increase from 231,633 units sold in the corresponding period of the past fiscal year. Industry growth would have been higher at about 26% if we had increased sales of
who has stopped reporting data to SIAM on a monthly basis.
Tata Motors sold 45,197 passenger cars last month.
Automakers in India usually report wholesale shipments from factories to dealers and not retail sales to customers.
Tricycle sales rose 184% in June to 26,701 units. Wholesale demand for two-wheelers also grew by 23% to 1,308,764 units. While scooter sales rose 70% to 421,362 units, motorcycle sales rose 9% to 849,928 units in June.
Rajesh Menon, Director General of SIAM said: “In the first quarter of this year, sales in the passenger car segment were ~9.1 lakh units, in the two-wheeler segment ~37.25 lakh units, in the three-wheeler segment ~ 76 thousand units and in the commercial vehicle segment ~ 2.25 lakh units.”
Because even if monthly sales grew on a low basis, a closer look at the data shows that the first quarter Compound Annual Growth Rate (CAGR) was a meager 1% in the passenger car segment over the past five years. Meanwhile, the CAGR in the commercial vehicle, three-wheeler and two-wheeler segments was (-)0.6%, (-)17.1% and (-)10%, respectively.
Especially in the entry-level segment, the demand for both small cars and two-wheelers has fallen sharply. While mini-car sales declined 59% in the quarter compared to Q1FY19, motorcycles (to 110cc) and scooters (to 125cc) declined by 42% and 36% over the period considered.
The auto industry continues to be under pressure from high raw material costs, including precious metals.
“Recently, the government has taken important steps to ease inflationary pressures and help the common man by cutting central excise taxes on petrol and diesel and changing the tax structure to moderate the prices of steel and plastic,” Menon said, adding. While industry stakeholders are eagerly awaiting similar support for CNG prices, which have risen exponentially over the past 7 months.
“Supporting CNG prices would help the common man, facilitate public transportation and enable a cleaner environment,” he said.