Pent-up demand, lower base accelerate July domestic PV sales

New Delhi, Aug 12 (SocialNews.XYZ) Pent-up demand along with base effect and low interest rates accelerated India's domestic PV (passenger vehicle) sales on a year-on-year and sequential basis in July.

Accordingly, sales of passenger vehicles increased to 2,64,442 last month compared to 1,82,779 units sold during the same period of 2020.

The data furnished by Society of Indian Automobile Manufacturers (SIAM) showed that PV sales were higher than the 2019 level of 1,90,115 units.

Even on sequential basis, July sales were higher than 2,31,633 units sold during June.

Besides, SIAM said the data does not include sales figures from some key players such as Tata Motors.

The PV sales data comprises of cars, utility vehicles and vans.

Segment-wise, a total of 1,30,080 passenger cars were sold in the domestic market in July, up from 1,02,773 units in the like period of 2020 and 1,16,814 units in 2019.

Similarly, the sales of other sub-categories such as UVs and vans grew on a year-on-year basis.

As per the data, UV sales rose to 1,24,057 units from 71,384 units, while the off-take of vans rose to 10,305 units from 8,622 units in the year ago period.

In terms of two-wheelers, sales were lower in July 2021 at 12,53,937 units from 12,81,354 units sold in the like month of 2020 and 15,11,717 in 2019.

The overall domestic automobile sectors' off-take representing the sales of passenger vehicles, two-wheelers and three-wheelers rose to 15,36,269 units from 14,76,861 units sold during the same period of last year.

In addition, the data showed a YoY rise in exports. The overall exports including PVs, two-and three-wheelers rose to 4,74,940 units from 2,35,201 units sold during the same period of last year.

"Indian automobile industry continues to face heavy headwinds in the form of global semiconductor shortage and steep rise in commodity prices," said Rajesh Menon, Director General, SIAM.

"On one hand, the Industry is managing such supply chain challenges while ensuring safety of its people, and on the other hand Industry is also keeping a close eye on the onset of a 3rd wave in India and across the world."

According to Menon, amidst such challenging and uncertain business environment, industry is trying to maximise production and sales.

"However, sales for the period of April to July 2021 for Passenger Vehicle segment are still lower than the level of 2016-17; for Two-wheeler segment, still lower than the level of 2010-11; and Three-wheeler segment has been pushed back by many years."

"In July 2021, Passenger Vehicle segment clocked sales of about 2.64 lakh units; Two-wheeler segment stood at around 12.54 lakh units and Three-wheeler segment sold just about 18 thousand units."

Source: IANS