Automobile dispatches to dealers jumped 10.6% to 17,06,545 units in July, aided by increased production following improved semiconductor availability. However, according to the Society of Indian Automobile Manufacturers (SIAM), the market for entry-level passenger cars, two-wheelers and three-wheelers is yet to improve ahead of the festive season.
“In July 2022, sales in the passenger vehicle segment stood at 2.9 lakh units; two wheelers [clocked] Rajesh Menon, director general of SIAM, said sales of 13.8 lakh units and three-wheelers stood at 31,000 units.
Mr Menon said that the sales of two wheelers in July were still lower than the numbers in July 2016 and the sales of three wheelers were lower as compared to July 2006.
“The third consecutive hike in repo-rates to check high inflation will make auto loans costlier, making it more difficult to recover entry-level vehicles,” he said, adding that the government’s recent decision to increase the quantum of decision to allocate. Domestic gas for the CNG segment will significantly reduce the cost of gas companies.
“We are hopeful that in line with the intention of the government, gas companies will pass on the full benefits to the end consumers by reducing the retail CNG prices,” he added.
Passenger vehicle sales in July 2022 increased by 11.1% to 293,865 units from a year ago. Production of these vehicles increased by 7.6% to 358,888 units.
While wholesale sales of cars stood at 143,522 units (130,080), utility vehicles sales stood at 137,104 (124,057) and vans were 13,239 (10,305 units).
SIAM data does not include sales data for BMW, Mercedes, Tata Motors and Volvo Auto. Bulk data for commercial vehicles is also not included.
In July 2022, total two wheeler dispatches grew 10% to 13,81,303 units. While scooter sales increased to 4,79,159 units (3,73,695), motorcycle sales increased to 8,70,028 (8,37,166 units).
Sales of three-wheelers increased to 31,324 units (18,132).