Total domestic passenger vehicle (PV) wholesale grew 185 per cent year-on-year (YoY) to 2,51,052 units in May as against 88,045 units in the same month last year.
The low base was due to the second wave of Covid-19 and the lockdown imposed by various states.
Sale of two wheelers and three wheelers
Two-wheeler sales also rose 253 per cent during the month to 12,53,187 units as against 3,54,824 units in May 2021, according to the monthly report shared by the Society of Indian Automobile Manufacturers (SIAM) on Friday.
Total three-wheeler sales rose sharply to 28,542 units in May from 1,262 units in the same month last year.
However, the monthly sales of two wheelers and three wheelers are still lagging as compared to the sales years ago.
“Sells of two-wheelers and three-wheelers remain sluggish in May, as they are even lower than they were nine years and 14 years ago, respectively. Passenger vehicle segment sales are still below 2018 levels,” said Rajesh Menon, Director General, SIAM.
He said the recent government intervention would help mitigate supply-side challenges, but the second hike in repo-rates by the RBI and third-party insurance rates could become more challenging for customers, making Demand may be affected.
Overall sales across categories grew by 245 per cent to 15,32,809 units during the previous month as compared to 4,44,131 units in May 2021.
According to Reliance Securities, some segments also witnessed a month-on-month recovery, indicating a gradual recovery in industry volumes. Rural areas also saw initial improvement ahead of normal monsoon.
“Scooter and MPV (Van) segment registered a strong growth of 6-7x while SUV growth was relatively lower at 160 per cent due to higher base. Overall industry volumes will continue to improve in the coming months, though at a slower pace. An easing in semiconductor supply will pick up production in the second quarter of the current fiscal, while commodity cost inflation will continue to put pressure on margins in the first quarter.
Published on
10 June 2022