Q1 auto sales stable, sharp jump in two-wheelers; SIAM says interest rate still a concern

The Indian automotive industry has achieved a smooth transition to the BS6 Phase 2 norms, and the overall performance of various vehicle segments bears testimony that the country’s auto growth story is destined for greater heights.

In Q1 FY2024, the overall wholesales came to 5.49 million vehicles sold, up 11 percent YoY. This includes 9.95 lakh passenger vehicles, the highest quarterly sales for the segment, primarily driven by SUVs. This marked a growth of 9 percent YoY. This also marks the passenger vehicle segment crossing the 2 million wholesales mark in the first half of the calendar year.

The commercial vehicle segment saw a marginal decline of 3 percent on the back of slowdown in LCV goods carrier. A total of 2.17 lakh commercial vehicle were sold, compared to 2.24 lakh CVs sold last year.

The three-wheeler segment saw a robust growth of 89 percent primarily led by passenger carrier, e-rickshaw and e-cart segment. A total of 1.44 lakh three-wheeler were sold, up 89 percent YoY.

In the two-wheeler segment, the slowdown in scooter sales was countered by the pickup in demand for motorcycles, primarily through the changing customer preference in the premium two-wheeler space. A total of 4.14 million two-wheelers were sold, which is 11 percent higher compared to the same period last year.

In June, a total of 1.38 million vehicles were sold in the country, which was marginally higher by 4 percent compared to the same period last year. This includes 3.27 lakh passenger vehicles (+2% YoY), 53,019 three-wheelers (+99% YoY) and 1.33 million two-wheelers (+2% YoY).

Vinod Aggarwal, President, SIAM said, “In the quarter, the auto industry seamlessly transited to the very stringent BS 6 Phase 2 Emission Norms from April 1, 2023, reflecting the commitment of the Industry towards the environment. overall passenger vehicles, two-wheelers, three-wheelers and commercial vehicles have performed well in Q1 of 2023-24, although some sub-segments have shown slight momentary decline, compared to Q1 of last year. With expectations of a reasonable monsoon, which has now covered most parts of the country, coupled with lowering inflation, we expect the economy to continue to grow, which in turn should help the auto sector. High interest rates remain a concern.”

Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in Q1 of Apr-June 2023 has been the highest ever with a growth of 9.4%, compared to the previous year. The passenger vehicle segment crossed 2 million units in the first half of Calendar year for the first time. Two-Wheelers also posted a growth of 11.2% in this quarter, compared to last year, but are still lower than 2016-17 levels. Domestic sales of three-wheelers in Q1 of 2023-24 grew by 89.4% compared to last year

albeit on a low base, but are still lower than the 2018-19 levels. Commercial Vehicles have de-grown by (-)3.3% in this Quarter, compared to Q1 of last financial year.”