Passenger vehicle dispatches dip 4% in April as supply challenges remain: SIAM

Domestic dispatches of passenger vehicles declined by 4 per cent in April due to continuing supply-side challenges, Society of Indian Automobile Manufacturers (SIAM) said on Wednesday. 

In April 2021, domestic wholesales for passenger cars were 2,61,633 units, and dispatches were 1,12,857 units, compared to 1,41,194 units in April 2021. Wholesale volumes of utility vehicles increased from 1,08,871 units to 1,27,213 units in the year-ago period.

The number of van dispatches remained flat in April at 11,511, down from 11,568 in April 2021.

Sales of two-wheelers increased by 15 percent to 11,48,696 units last month, up from 9,95,115 units in April 2021.

The number of motorcycles sold in April 2021 increased to 7,35,360 units from 6,67,859 units in April 2021. In the same vein, scooter dispatches increased to 3,74,556 units last month, up from 3,01,279 units a year ago.

Wholesale three-wheeler sales increased to 20,938 units last month, compared to 13,856 units in April 2021.

"Sales of passenger vehicles is still below the April 2017 figures, while two-wheelers are even below the April 2012 figures," SIAM Director General Rajesh Menon noted.

Three-wheelers are yet to reach normal levels, as sales are still less than 50 per cent of April 2016 figures, he added.

Manufacturing companies are working hard to manage their supplier ecosystems with agility and flexibility as the supply side challenges continue, Menon stated.

"Further, manufacturers are also monitoring the likely impact on demand, due to the recent hike in repo rate, as it would increase the lending rates to the customers," he said.

Earlier this month, the Reserve Bank of India had increased the repo rate, the rate at which it lends to commercial banks, by 40 basis points to 4.4 per cent in a bid to contain inflation that crossed 6 per cent for three successive months. 

(With Inputs from PTI)