Auto sales decline 3.09% YoY in August; PV sales rise 14.16% over festive demand
BusinessToday.In September 11, 2020
The total production of auto units, including comprising passenger vehicles, three-wheelers, two-wheelers and quadricycle, declined 3.09 per cent in August 2020 at 21, 62, 367 units against 22,31,355 units in August 2019, the Society of Indian Automobile Manufacturers (SIAM) data said. Barring passenger vehicles, all other categories recorded a decline in year-on-year sales, reflecting the coronavirus-led stress in the economy.
Passenger vehicles sales stood at 2,15,916 units in August 2020 compared to 1,89,129 units in August 2019, marking a growth of 14.16%, mainly because of pent-up demand and beginning of a festive season. Three-wheeler sale showed a major decline of 75.29 per cent at 14,534 units in August 2020 vs 58,818 units in August 2019. Two-wheeler sale also declined 3 per cent in the month to 15,59,665 units in August 2020 vs 15,14,196 units in August 2019
On a quarterly basis, the total production of passenger vehicles, three-wheelers, two-wheelers and quadricycle in April-August 2020 declined 54.16 per cent to 53,35,683 units against 1,16,39,355 units in the same period last year. While the PV sales declined 49.41 per cent in the quarter, three-wheeler sales were down 84.86 per cent. Two-wheeler sales also recorded a dip of 48.57 per cent.
"After a period of lull owing to the COVID-19 imposed lockdowns, the month of August 2020 has witnessed improvement in the sales figures of two-wheelers and passenger vehicles. However, the three-wheeler segment continues to post a de-growth of more than (-) 75 per cent compared to August 2019. The industry is positive that the coming festive season will pave the way for a faster revival of the industry," said Rajesh Menon, Director General, SIAM.
Maruti Suzuki India MD/CEO and newly appointed SIAM President Kenichi Ayukawa said the industry is observing growth, which has instilled 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 2020, it is to be recognised the base figures in August 2019 itself was very low, as the industry had shown a de-growth of about (-) 32% for passenger vehicles and (-) 22% for 2 wheelers in 2019, over 2018, then. Still, 14% growth of passenger vehicles and 3% growth in two-wheelers in August 2020 indicates trends of recovery for the industry, though it is on the backdrop of pent-up demand and beginning of a festive season this month."
The auto sector was majorly hit due to the coronavirus-induced lockdown in India, though the gradual opening of the economy has led to an uptick in demand. However, it'll take time for the sector to reach pre-COVID sales levels.
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