Although sales of passenger vehicles (PVs) and two-wheelers grew in December as also in the October-December quarter, April-December saw virtually every segment of the auto sector report a year-on-year decline. Sales of PVs dropped to a 10-year low during the nine-month period.
“We are at a seven-year low in the two-wheeler segment and a ten-year low in PVs. We are behind ten years in the commercial vehicle segment and 20 years for three-wheelers. This means the auto industry will have to work hard to regain better volumes and business health,” Society of Indian Automobile Manufacturers (Siam) president Kenichi Ayukawa told reporters in a virtual press conference on Thursday. Ayukawa said 2019-20 fiscal had been a year of big de-growth for the auto industry, so using it as the base to calculate percentage growth for the current fiscal would be misleading.
“The sales growth we saw during October-December quarter of the current fiscal contains some of the pent up demand from the first quarter, so standalone sales performance of the third quarter may not be a true reflection of the industry’s overall sales,” Ayukawa said, adding that instead, cumulative sales from April-December 2020 would better reflect the market pulse.
On sales outlook, Ayukawa said while the industry expected 2021 to be better than 2020, it remained tough to predict the future with the pandemic still there.
During the October-December quarter, passenger vehicle sales increased 14.44% y-o-y and two-wheeler sales rose 13.37%. However, commercial vehicle sales saw a dip of 1.12%. Vehicle sales across categories rose by 10.61%.
However, the nine-month period of April-December shows a contrasting scenario. PV sales was down by 16.06%, two-wheeler sales saw a decline of 22.63% and CV sales witnessed a decline of 37.23%. Vehicle sales across categories declined by 24%.
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