Low base, attractive interest rates lift Sep domestic PV sales (Roundup)

Low base, along with more sustainable pent-up demand, boosted domestic passenger vehicles’ sales in September on a year-on-year basis.

According to industry data released on Friday, a total of 2,72,027 passenger vehicles were sold in the domestic market, representing a rise of 26.45 per cent, against the 2,15,124 units off-take during the like period of 2019.

The data released by the Society of Indian Automobile Manufacturers (SIAM) also showed a sequential growth in sales during September.

In August, the domestic passenger vehicles’ sales had risen by 14.16 per cent to 215,916 units from 1,89,129 units sold during the corresponding month of the previous year.

Besides, the data showed that car sales in the country rose by 28.92 per cent to 163,981 units in September, compared with 127,194 units during the year-ago period.

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

In terms of utility vehicles, sales grew by 24.50 per cent to 96,633, while vans’ offtake went up by 10.64 per cent to 11,413 units against the same month a year ago.

However, three-wheeler sales were 18,640 units in September 2020 compared to 66,362 units on a y-o-y basis, marking a decrease by (-) 71.91 per cent.

Additionally, two-wheeler sales were 1,849,546 units in September 2020, compared to 1,656,658 units, representing a growth of 11.64 per cent.

On the second quarter FY21 performace, SIAM data showed that passenger vehicle sales rose 17.02 per cent to 726,232 units from 620,620 units sold during the corresponding month of the previous year.

In contrast, commercial vehicle sales stood at 133,524 units from 167,173 units showing a de-growth of (-) 20.13 per cent.

Similarly, three-wheeler off-take declined. The segment’s sales decrease by (-) 74.63 per cent to 45,902 units from 180,899 units.

Two-wheeler sales segment, however, reported a marginal growth of 0.17 per cent to 4,690,565 units from 4,682,571 units.

“In quarter-2 some segments have shown signs of recovery. Passenger vehicles and two-wheelers are positive, although on a very low base of previous year,” said SIAM President Kenichi Ayukawa.

“We are expecting good demand in the festive season starting tomorrow. Thanks to government intervention, auto loan interest rates are below 8 per cent, the lowest in a decade and that should encourage customers to purchase new vehicles. Commercial vehicle and three-wheeler sales are still in the negative growth zone.”