After a long period of witnessing negative growth across segments, there is finally some good news for the automobile industry. According to the monthly wholesale auto data released by Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales increased by 14.16% in August to 2,15,916 units vs 1,89,129 units in August 2019.

On the other hand, two-wheeler sales rose 3% 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 vs 9,37,486 units in August 2019 aided by a good rural and semi-urban demand.

However, scooter sales and three-wheeler sales down. Scooter sales slipped 12.3%, 4,56,848 units were sold in August 2020 as against 5,20,898 units in the previous year. Three-wheeler sales slipped 75.29%.

On the production front, passenger car production was down 5.98% and the total two-wheeler production was minutely up 0.03%.

Meanwhile, passenger car exports were down 45.17%, two-wheeler exports were down 14.23% and three-wheeler exports slipped 13.61%.

Kenichi Ayukawa, President, SIAM said, "We are beginning to observe growth which is instilling the confidence back into the industry, especially in the two-wheeler and the passenger vehicle segments. 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 were very low, as Industry had shown a de-growth of about (-) 32% for passenger vehicles and (-) 22% for two-wheelers in 2019, over 2018, then. Still, 14% growth of passenger vehicles and 3% 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."

Rajesh Menon, Director General, 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. The industry is positive that the coming festive season will pave the way for a faster revival of the industry."

In July, passenger vehicle sales had fallen almost 4% and an executive from an industry body had warned that auto sales were not expected to return to peak levels seen in 2018 for another three or four years.

Passenger car sales, which do not include utility vehicles and vans, were down 12.02% in July.

(With agency inputs)