Automobile wholesales have taken a beating in the financial year 2021 with all the segments showing sales decline against the last fiscal, thanks to the structural fall in the industry coupled with the impact of the Covid-19 pandemic.
The passenger vehicle (PV) sales dropped 2.24%, two-wheelers by 13.19%, commercial vehicles (CVs) by 20.77% and three-wheelers by 66.06% in FY21, data released by the Society of Indian Automobile Manufacturers (Siam) showed. Total production of vehicles dropped 14% year-on-year, while total vehicle sales recorded a decline of 14% and exports decreased by 13%.
Kenichi Ayukawa, president, Siam said, “On the sales front, a deep structural slowdown in the industry even before the pandemic, combined with the impact of Covid-19 in 2020-21, has pushed all the vehicle segments back by many years. Recovery from here will require time and efforts, by all the stakeholders. There is uncertainty in the value chain owing to semiconductors, lockdowns and raw material. In an environment of uncertainty, instead of trying to predict the future, we will all work hard to create it.”
In the fourth quarter of FY21, however, the PV sales registered a growth of 42.40% as against the same period last fiscal, while CVs reported a growth of 43.20% and two-wheelers recorded an increase of 24.29%, on a low base during the January-March 2020 period. Despite that, three-wheeler sales remained in the negative territory clinching a degrowth of 34%. The total production of vehicles dropped by 27% in the quarter with both total vehicle sales and exports clinching 26% growth each as compared to the numbers achieved in the same quarter last fiscal.
Rajesh Menon, director-general, Siam said, “If we look at Jan-March 2021 sales which might include some deferred sales from previous quarters, only passenger vehicle segment at 9.34 lakh sales was marginally above the previous high of Jan-March 2018 at 8.62 lakh.
Commercial vehicles sales at 2.10 lakh in Jan-March 2021 were below 2.82 lakh in Jan-March 2018. Similarly, two-wheeler sales in Jan-March 2021 stood at 43.54 lakh against Jan-March 2018 figures of 51.13 lakh. Three-wheeler segment was the worst-hit with a sale of 0.86 lakh in this quarter compared to 1.97 lakh in Jan-March 2018.”
For March 2021, the wholesales of passenger vehicles registered a growth of 115%, year- on- year while two-wheelers have notched a growth of 73% and three-wheelers registering a growth of 16%. This high growth could be attributed to the low base of the previous year coupled with the lockdown days at the end of March 2020 and the impact of transformation to BS-VI from BS-IV. The total production of vehicles registered a growth of 67% in March 2021, year-on-year.
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.