New Delhi, A record 39.69 lakh units of passenger vehicles were shipped from manufacturers to dealers – referred to in the industry as “wholesale” – in 2022-23. this is the highest score ever Annual wholesale sales for the segment, Backed by strong demand for utility vehicles and easing of supply chain issues, according to the Society of Indian Automobile Manufacturers (SIAM).
The industry body said it “sees no reason” the entry-level car segment – which has shrunk significantly over the years due to rising prices – will not see a “sudden” revival in demand.
Speaking to reporters on Thursday, SIAM President Vinod Agarwal said the passenger vehicle segment – which includes cars, utility vehicles and vans – recorded the highest ever domestic wholesale sales in 2018-19 (33.77 lakh units). crossed the summit.
The wholesale sale of passenger vehicles in 2021-22 was around 30.69 vehicles.
Responding to a question on rising prices of cars affecting demand in the entry-level segment, Agarwal said, “We may see a sudden demand (in this segment) in the coming times because at the end of the day there are still There are consumers who will need entry level cars… right now it’s slow for xyz reason, but there’s no reason why they shouldn’t come back.
He also added that not all cars in the utility vehicle segment are overpriced, some are available at reasonable prices. “So, there is some attractiveness at that price and hence you are seeing movement in this segment.”
“If you look at the overall (sales) numbers, they are going up, so that means buying is happening,” he said. If they’re going from x level of price to x plus, that’s a good sign. It’s a sign that people are more affluent… so more vehicles are being sold. Why are we interpreting it in a negative way?”
Shashank Srivastava, senior executive director (marketing and sales) at the country’s largest carmaker Maruti Suzuki, told ThePrint that the price of entry-level hatchbacks increased by about 28 per cent and 20 per cent in the last five years (2018-19). Is. In the last three years (2020-2021). This has led to a decline in sales from a record high of 15.5 lakh units in 2017-18 to 13.4 lakh units in 2022-23, he said.
He added that factors such as increase in commodity prices, regulatory stringency, higher taxes and feature enhancement have led to the increase in prices. “These factors affect all segments but the price elasticity is highest for this segment and hence the fall in demand was highest,” he said.
‘A reasonable approach’
Agarwal said things needed to be put in “proper perspective”.
“First of all, there is a need for regulatory norms. At the same time, we also have to look at how we create more benefits for the consumers through various means… The industry has performed very well in the last year despite all the regulatory concerns. Sales of passenger vehicles are at a new peak. “Commercial vehicles are also only about 5 percent less compared to the previous peak. Two wheeler sales are still down by 25 per cent Because entry-level sales have been affected.”
According to Aggarwal, while “regulatory changes or insurance etc… have increased the initial investment of consumers, and there may be a link with demand, there is a need for overall emission standards”.
“We as an industry cannot say that the government should not enforce environmental standards. Other safety-related features that are being installed in vehicles are essential. I guess we have to keep it in perspective. Overall the economy is doing well and I am sure these are things that stabilize with time.
For the full year, passenger car sales stood at 17,47,376 units (up from 14,67,039 units in the previous fiscal), utility vehicles at 20,03,718 units (up from 14,89,219 units) and van sales at 1,39,020. units (above 1,13,265 units).
According to the data released by SIAM, the wholesale sales of two-wheelers increased to 1,58,62,087 units in the financial year 2022-23 As against 1,35,70,008 units in 2021-22. It pointed out that the domestic sales of two-wheelers are still below the sales level of 2014-15.
Commercial vehicle sales during the year stood at 9,62,468 units as against 7,16,566 units in the year-ago period. Aggarwal said commercial vehicles registered the second highest domestic sales and are close to the previous peak of 2018-19.
Total vehicle wholesale sales across categories in 2022-23 were pegged at 2,12,04,162 units as compared to 1,76,17,606 units in the previous financial year.
(Edited by Geetalakshmi Ramanathan)
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