PremiumNEW DELHI: Wholesale dispatches of cars and utility vehicles continue to improve in March, compared to the preceding month, on the back of sustained improvement in economic activity, shift in customer preference towards personal mobility to avoid covid-19 infection, and vehicle manufacturers' decision to increase stocks at dealerships.
Sales of passenger vehicles rose by 3.39% month-on-month (m-o-m) to 290,939 units in March on the back of 6.9% jump in dispatches of utility vehicles to 122,250 and just 1.19% increase in sales of passenger cars to 156985 units, according to data released by Society of Indian Automobile Manufacturers (Siam).
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Vehicle sales are usually compared on a corresponding basis, but in the second half of March last year automakers had to close down their respective factories and showrooms, as the Union government imposed a stringent lockdown from March 18. Subsequently, operations remained suspended till first May and, in some cases, early June.
On a corresponding basis, wholesale dispatches of passenger vehicles more than doubled from just 135,196 units in March last year.
Most of the leading automakers replenished inventory at dealerships after improved retail sales over the last five months and high waiting period on popular products due to supply chain constraints has also led to substantial reduction in vehicle stocks. Automobile sales in India are counted as factory dispatches and not retail sales.
According to Kenichi Ayukawa, president, Siam, front, a deep structural slowdown in the industry even before the pandemic, combined with the impact of covid-19 in 2020-21, has pushed all vehicle segments back by many years.
“Recovery from here will require time and efforts, by all stakeholders. There is uncertainty in the value chain owing to semiconductors, lockdowns and raw material. In an environment of uncertainty, instead of trying to predict the future, we will all work hard to create it," he added.
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Premium Premium Dispatches of two-wheelers also rose by 4.9% to 1,496,806 units as manufacturers are expecting better retail sales in the coming months due to the marriage and crop harvest season. Sales of motorcycles increased by 9.19% to 993,996 units while the same for scooters declined marginally by 1.5% to 464,744 units. With the resumption of public transport sales of entry level motorcycles have softened over the last three months in the rural and semi urban markets.
In corresponding period sales of motorcycles and scooters stood at just 866,845 units. Siam did not provide data pertaining dispatches of commercial vehicles.
Overall, in FY21, wholesale of passenger vehicles declined by 2.2% year-on-year to 2.71 million units while the same for two-wheelers dropped by 13.19% to 15.11 million due to covid-19 induced economic slowdown. Siam predicted more than 20% decline in April 2020, but automakers made a strong comeback in the second half of the fiscal year as demand for vehicles surged as result of better-than-expected economic recovery and shift towards personal mobility. Dispatches in the commercial vehicles segment also slipped by 20.7% to 568559 units.
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