Automobile sales grow 14 % y-o-y in August on low base

The wholesale of automobiles during August improvedand reported growth in most of the segments, including passenger cars, utility vehicles and motorcycles.

In the passenger car segment, the wholesale numbers grew 14 per cent year-on-year to 1,24,715 units during the month, compared with 1,09,277 units in August last year.

Sales of utility vehicles grew 16 per cent to 81,842 units (70,837 units), the latest data from the Society of Indian Automobile Manufacturers (SIAM) said on Friday.

This led to the growth of overall passenger vehicle sales to 2,15,916 units during the month, up 14 per cent compared with 1,89,129 units in August 2019.

In the two-wheeler segment, the motorcycle sales grew 10 per cent YoY to 10,32,476 units (9,37,486 units).

However, scooter sales declined 12 per cent YoY to 4,56,848 units (5,20,898 units).

Kenichi Ayukawa, President, SIAM, said: “We are beginning to observe growth which is instilling confidence back into the industry, especially in the two-wheeler and the passenger vehicle segments. Even though the industry witnessed year-on-year growth in August, it is to be recognised that the base figures in August 2019 itself were very low, as industry had shown a de-growth of about (-) 32 per cent for passenger vehicles and (-) 22 per cent for two-wheelers in 2019, over 2018, ”.

Still, 14 per cent growth of passenger vehicles and 3 per cent growth in two- wheelers in August indicates trends of recovery for the industry, though it is on the backdrop of pent-up demand and beginning of festival season this month, he said.

“After a period of lull owing to the Covid-19 imposed lockdowns, the month of August has witnessed improvement in the sales figures of two-wheelers and passenger vehicles. However, three-wheeler segment continues to post a de-growth of more than 75 per cent YoY. Industry is positive that the coming festival season will pave the way for a faster revival of the industry,” said Rajesh Menon, Director General, SIAM.

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