Sales of two-wheelers fell 19.8 percent, with motorcycle sales accounting for 22 percent of the decline and scooters riding in at 14.2 percent
Monthly auto sales came in negative in February, data released by Society of Indian Automobile Manufacturers (SIAM) revealed. With domestic passenger vehicle sales declining 7.6 percent year-on-year to 251,516 units, the auto industry is showing no signs of improving.
Within the PV space, domestic car and van sales have fallen 8.7 percent and 32.7 percent, respectively. However, exports have risen by 8.8 percent to 55,437 units, with utility vehicles leading the charge with a 46 percent rise from last year's figure.
Sales of two-wheelers fell 19.8 percent, with motorcycle sales accounting for 22 percent of the decline and scooters riding in at 14.2 percent. Exports in February rose 15.6 percent to 311,759 units.
Three-wheeler sales and exports have also seen a decline of 31 percent and 8.9 percent, respectively. Domestic commercial vehicle sales have seen the biggest YoY drop of 32.9 percent to 58,670 units, while exports touched a low of 19.6 percent.
With sales and exports seeing drastic declines, production, too, in all categories have taken a hit. PVs have seen the smallest decline, with a cut of 9.4 percent, while production of CVs plummeted 40.1 percent. Two-wheeler and three-wheelers saw a production cut of 18.3 percent and 23.7 percent, respectively.
Though production declined by 18.14 percent, exports supported by two-wheelers and PV sales rose 11.05 percent.
At the start of the year, the auto industry body was bullish on a revival following the 2020 Auto Expo. However, given the transition to Bharat Stage-VI emission norms and the coronavirus pandemic, SIAM expects production to be hampered as 10 percent of the raw materials are imported from China by most manufacturers in India.
Commenting on the February data, Rajan Wadhera, President, SIAM, said: “The decline in wholesale despatches is primarily due to economic slowdown and lower production of BS-IV vehicles. Some upside on the registration numbers of VAHAN can be attributed to last minute purchase by customers trying to advance purchase of BS-IV vehicles"
He feels supply chain disruptions from China may impact production plans for companies going forward. "The auto industry is grateful to the government for issuing a notification of force majeure for coronavirus and 24x7 clearance of shipments at all customs formations,” he added.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
