Business Economy : Passenger vehicle sales in July up 45 pc, signals economic recovery

Insight Online News

New Delhi, Aug 12 : Helped by favourable base effect and pent-up demand, passenger vehicle sales jumped 45 per cent in July, 2021 to 2,64,442 units as compared to 1,82,779 units in the same month a year ago.

As per data released by industry body Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales comprising motorcycles, moped, scooters and scooterette declined 2 per cent during this period.

The total dispatches (from OEMs to dealers) of two-wheelers were 12,53,937 in July compared to 12,81,354 in the same month of 2020. Sales of three-wheelers jumped in percentage terms due to favourable base last year but the segment could clock the total sales of just 17,888 in July.

SIAM Director General Rajesh Menon, however, said that 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.

Menon said that Indian automobile industry continues to face heavy headwinds in the form of global semiconductor shortage and steep rise in commodity prices.

“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,” he added.

Monthly auto sales number is one of the closely-watched high frequency data by public policy experts and industry captains to gauge the performance of the economy. The rise in domestic sales numbers suggests that the economy is getting back on track after being hit hard by the pandemic.

UNIINDIA

Leave a Reply

Your email address will not be published. Required fields are marked *