Domestic passenger vehicle wholesales rise 2% in June; up 9% in Q1: SIAM

The Society of Indian Automobile Manufacturers (SIAM) on Wednesday said that the demand has picked up in rural areas despite a drop in sales of entry-level passengers vehicles due migration to SUVs, bigger cars, reported Reuters.

According to the latest data released by SIAM, domestic passenger vehicle wholesales in India witnessed a 2.2 percent increase in June, reaching 3.27 lakh units. Additionally, two-wheeler sales also experienced a rise of 1.7 percent, reaching 13.30 lakh units. The figures indicate a positive trend in the country's automobile market.

Comparing the data to June 2022, the passenger vehicle dispatches to dealers increased from 3,20,985 units to 3,27,000 units in June 2023. Moreover, during the April-June quarter, passenger vehicle sales grew to 9,95,974 units, reflecting a 9 percent increase compared to the same period last fiscal year, where sales were at 9,10,495 units.

In terms of two-wheelers, the total sales volume rose by 2 percent in June 2023, amounting to 13,30,826 units, compared to 13,08,764 units in the corresponding period of the previous year. During the June quarter, two-wheeler sales saw a significant 11 percent surge, reaching 41,40,964 units, as opposed to 37,24,533 units in the year-ago period.

The data also revealed a substantial growth in three-wheeler sales, which nearly doubled from 26,701 units in June 2022 to 53,019 units in June 2023. In the April-June quarter, total three-wheeler dispatches reached 1,44,475 units, showcasing a remarkable increase compared to 76,293 units in the same period last fiscal year.

On the other hand, commercial vehicle sales experienced a decline, dropping from 2,24,488 units in the same quarter last year to 2,17,046 units this year.

In the June quarter, the Indian automobile industry achieved a total sales volume of 54,98,602 units, demonstrating growth when compared to the 49,35,910 units recorded in the April-June period of the previous financial year.

SIAM also said that a fall in exports is a major concern, impacted by foreign currency fluctuations. Higher interest rates are also a concern for the entry-level vehicles. Sales of entry-level vehicles have also dropped due to migration to SUVs and bigger cars.

Overall, the Indian auto industry showcased a resilient performance in June, indicating steady growth in domestic vehicle sales across various segments.

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