The Society of Indian Automobile Manufacturers on Thursday said that wholesale sales of domestic passenger vehicles are set to grow by 26.73% to over 38.9 lakh units in 2022-23.
Dispatches of passenger vehicles (PVs) from manufacturers to dealers stood at 38,90,114 units in the fiscal ending March 31, 2023, as compared to 30,69,523 units in 2021-22, according to the latest data released by SIAM.
The previous highest wholesale sales of PVs was recorded in 2018-19 at 33,77,436 units.
PV sales growth in FY23 was led by utility vehicles – 20,03,718 units in FY23 as against 14,89,219 units in FY22, a growth of 34.55%. The segment now commands 51.5% of PV sales.
SIAM President Vinod Agarwal said 2022-23 has been a year of consolidation post COVID-19, although supply chain disruptions due to the Ukraine conflict have resurfaced.
“However, with efficient management of supply chains and better availability of goods, prices have moderated year-on-year, especially for electronics items, though it remains a matter of concern,” he told reporters here.
Shri Aggarwal said that while the PV segment has registered the highest ever domestic sales in 2018-19 surpassing the previous peak, commercial vehicles have registered the second highest domestic sales surpassing the previous peak of 2018-19. is close.
Commercial vehicle sales stood at 9,62,468 units in FY23 as compared to 7,16,566 units in FY22.
SIAM Director General Rajesh Menon said the commercial vehicle, two-wheeler and three-wheeler segments “are yet to reach pre-pandemic levels.”
Total two-wheeler sales in FY23 stood at 1,58,62,087 units as against 1,35,70,008 units in FY22, a growth of 17%. This segment had seen a decline in the last three consecutive years.
Vehicle wholesale sales across categories in 2022-23 stood at 2,12,04,162 units as compared to 1,76,17,606 units in 2021-22, a growth of 20.36%.
SIAM said challenges remain in entry-level passenger cars and two-wheelers. The entry level mini cars segment declined by 57% in FY23 as compared to the peak levels of FY2017.
On the other hand, sales of entry-level scooters are also set to decline by 27% in FY23 as compared to peak levels in 2018-19, and sales of entry-level motorcycles are set to decline by 38% in 2022-23, the highest in 2018-19. level has been compared. Siam said.
Asked whether meeting regulatory norms, resulting in higher prices, has affected affordability, Mr. Aggarwal said, “If you look at the performance of the industry, it improved significantly last year despite all the regulatory concerns. Has happened.”
“There is also a need for regulatory norms. At the same time, we also have to see how we create more benefits for the consumers through various other means… Sometimes when the cost goes up, the consumer is able to take a quick decision. are not.’
However, he said, there is a need for mobility and improving income levels.
“I am sure there will be a fine balance, which will be created over time and this penetration level will start coming up,” said Mr. Agarwal.
On the outlook for the new fiscal, he said, “If you look at the overall demand, it is growing and it is growing in the right direction.” So, we should be very positive about further growth in demand in the current year… We are very positive.”
As far as semiconductor issues are concerned, it seems to have improved, and better management of supply chains and overall assets is going to improve as well, he said.
According to the latest SIAM data, domestic wholesale sales of passenger vehicles grew 4.47% year-on-year to 2,92,030 units in March.
In March last year, wholesale sales of passenger vehicles stood at 2,79,525 units.
SIAM said two-wheeler sales in the domestic market stood at 12,90,553 units last month, as against 11,98,825 units in the year-ago period.
Total vehicle wholesale sales last month stood at 16,37,048 units as against 15,10,534 units a year ago.