Passenger vehicle (PV) wholesales rose by 45 pre cent year-on-year in July, data released by Siam on Thursday showed. Three-wheeler sales also surged 41per cent on good consumer appetite. However, two-wheeler despatches declined by 2 per cent during the month.
The total sales across categories, excluding commercial vehicles, stood at 15.36 lakh units compared with 14.76 lakh units in July last year, registering a growth of 4 per cent.
The country has produced 20.99 lakh total vehicles in July 2021 against 17.15 lakh units in July 2020, registering a growth of 22 per cent, the Society of Indian Automobile Manufacturers (Siam) release stated.
Analysts had factored in the likely trend in their forecast for July wholesales with Motilal Oswal Financial Services saying that while there was negative sentiment due to the fear of a third Covid wave, this seems to have had a higher impact on two-wheelers than PVs. Inquiry levels for PVs have improved and are expected to convert to bookings once the inauspicious period is behind, it wrote in a preview of the auto industry.
Amid the challenging and uncertain business environment, the auto industry is trying to maximise production and sales. However, PV sales for the period of April to July 2021 are still lower than the level of 2016-17, for two-wheelers, it is lower than the level of 2010-11 and three-wheelers have been pushed back by many years, according to Siam.
Rajesh Menon, director-general, Siam said: “The Indian automobile industry continues to face heavy headwinds in the form of global semi-conductor shortage and steep rise in commodity prices. On one hand, the industry is managing such supply chain challenges while ensuring safety of its people, and on the other hand industry is also keeping a close eye on the onset of a third wave in India and across the world.”
Tarun Garg, director, sales, marketing & service, Hyundai Motor India, said: “A positive growth momentum is clearly visible in the PV industry with the stabilisation of macro-economic factors, good monsoons and increase in consumer shift towards personal mobility.”
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.