Passenger vehicle dispatches rebound in June on easing Covid-19 curbs

According to Society of Indian Automobile Manufacturers’ (Siam) wholesale data released on Wednesday, the overall automobile sales recorded a 15 per cent growth in June 2021 as compared to June 2020.

By:Updated: Jul 15, 2021 7:24 AM
The domestic sales of passenger vehicles has increased in June, year on yearImage for representational purposes only

The wholesale dispatches from the factory gates of automakers to the dealers rebounded in June, year-on-year, on the back of easing of Covid second wave restrictions in many states.

The domestic sales of passenger vehicles more than doubled at 119 per cent and the overall automobile sales recorded a 15 per cent growth in June 2021 as compared to June 2020, thanks to a low base an year ago, coupled with the pent-up demand.

According to Society of Indian Automobile Manufacturers’ (Siam) wholesale data released on Wednesday, the two-wheeler sales grew by 4 per cent, y-o-y, however, the three-wheeler sales declined by 9per cent.

Though June was a better month when compared to previous two months, industry and analysts expressed cautious optimism on the further revival of the demand in the wake of fear of a third Covid wave, along with price hikes in commodities and semi-conductor shortage.

Kenichi Ayukawa, president, Siam, said during a virtual press meet that there is a significant rise in commodity prices and a global shortage of semiconductors. This, along with the fear of Covid third wave, may make it difficult to predict the future and the industry is working on whatever there is in their control like maximising production and sales while ensuring safety of their people and customers.
Jefferies said on the improving outlook that Indian autos industry faced simultaneous Covid-led demand and commodity-led margin pressures over the last few months. Demand is now recovering with the sharp fall in Covid cases.

On the rising fuel prices, Ayukawa said: “The fuel price going up, we will get a negative impact. We are expecting the fuel prices to come down to a reasonable level. We have to watch the demand because people will hesitate to use their vehicles. We cannot say how much impact will it have on demand.”

ICICI Securities said in a note that the auto industry saw a decent recovery in June 2021, with resilience of the rural belt being the key takeaway for the month. PV segment also did relatively well while M&HCV space turned in a disappointing performance.

Tarun Garg, director, sales, marketing & service, Hyundai Motor India, said, “With markets opening up and improvement in customer sentiments, Hyundai is committed to deliver innovative and world class quality products and services meeting and exceeding customers aspirations. The newly launched Hyundai Alcazar has been receiving tremendous customer and media response setting some new benchmarks in the industry.

Rajesh Menon, director general, Siam, on the first quarter sales, said the first quarter of this year too, sales were subdued due to the impact of Covid second wave. Sales of all segments were lower in past several years, barring Q1 of FY 20-21. Passenger vehicle segment registered sales of 6.46 lakh vehicles in this quarter, which is lowest in past 7 years, barring Q1 of FY 20-21. Sales of 1.06 lakh units for the commercial vehicle segment and 24.04 lakh units for the two-wheeler segment, were lowest in past 12 years, barring Q1 of FY 20-21. Three-wheeler segment was the worst-hit with sales of just about 24,000 units, which has been lowest in more than two decades, barring Q1 of FY 20-21.

Naveen Soni, senior VP, Toyota Kirloskar Motor, said, “Having resumed production with a 50% workforce last month after the gradual unlock in Karnataka, our immediate goal was to cater to the pending orders of our customers. Although our dispatches only began by the third week of June, we have been able to register a 128% growth over domestic sales in June 2020.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News