Signs of recovery in Auto industry! August passenger vehicle sales rise 14 pct, two-wheelers log 3% rise, says SIAM

After a long period of witnessing negative growth across segments due to the COVID-19 pandemic, finally there is some good news for the auto industry in the month if August. According to monthly wholesale auto data released by Society of Indian Automobile Manufacturers (SIAM), Passenger vehicle sales increased by 14.16 per cent in August to 2,15,916 units against 1,89,129 units in August 2019.

On the other hand, Two-wheeler sales rose 3 per cent to 15,59,665 units, as compared to 15,14,196 units in the previous year. Motorcycle sales were up 10.13%, 10,32,476 units against 9,37,486 units in August 2019 aided by a good rural and semi urban demand.

Speaking on the report Kenichi Ayukawa, President at SIAM said, "We are beginning to observe growth which is instilling confidence back into the industry, especially in the Two-wheeler and the Passenger Vehicle segments." He further added, "Even though the industry witnessed year-on-year growth in August 2020, it is to be recognized that the base figures in August 2019 itself was very low, as Industry had shown a de-growth of about (-) 32 per cent for Passenger Vehicles and (-) 22 per cent for 2 Wheelers in 2019, over 2018, then. Still 14 per cent growth of Passenger Vehicles and 3 per cent 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."

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Rajesh Menon, Director General at SIAM said, "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, Three-Wheeler segment continues to post a de-growth of more than (-) 75% compared to August 2019. Industry is positive that the coming festive season will pave the way for a faster revival of the industry."

However, Scooter sales and three-wheeler sales down. Scooter sales slipped 12.3 per cent. 4,56,848 units were sold in August 2020 as against 5,20,898 units in the previous year. Total three-wheeler sales slipped 75.29 per cent. On the production front, Passenger car production was down 5.98 per cent, total two-wheeler production was minutely up 0.03 per cent.

On the export front, Passenger car exports were down 45.17 per cent, two-wheeler exports were down 14.23 per cent and three-wheeler exports slipped 13.61 per cent.

(By Daanish Anand)