Growth indicates recovery: SIAM chief
Automakers saw positive growth in dispatches to the dealers in August with passenger vehicle (PV) sales rising 14.2% and two-wheeler sales increasing 3%, amid expectation of better demand during festive season.
As per the data from the Society of Indian Automobile Manufacturers (SIAM), domestic wholesale sales of PVs stood at more than 2.15 lakh units in August, a growth of 14.2% from the year-earlier period. Similarly, two-wheelers sales rose 3% to more than 15.59 lakh units. While motorcycle sales rose 10% to more than 10.32 lakh units, scooter sales declined 12% to about 4.56 lakh units.
“We are beginning to observe growth which is instilling confidence back into the industry, especially in the two-wheeler and PV segments,” said Kenichi Ayukawa, president, SIAM.
He, however, addedthough the industry witnessed year-on-year growth in August, it should be noted that the base figures in August 2019 were very low, as the industry had contracted by about 32% for PVs and 22% for two-wheelers in 2019 over 2018.
“Still, a 14% growth of PVs and 3% in two-wheelers in this August indicates recovery trends for the Industry.”
The three-wheeler segment, however, continued to slide with a decline of 75% in sales to 14,534 units.
Rajesh Menon, director general, SIAM, 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…Industry is positive that the coming festive season will pave the way for a faster revival of the industry.”
The retail sale in August, as per data released by automobile dealers’ body FADA, continued to decline, however, pace of decline showed improvement, hinting at a recovery. While retail sales of passenger vehicles in August fell by 7.12% to over 1.78 lakh units, the two-wheeler sales declined nearly 28.71% to about 8.98 lakh units.
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