Pent-updemandhelpsjulypv sales stay on road to recovery
Sales grew 14.16% sequentially in July as more dealerships resumed operations with lifting of curbs
India’s passenger vehicle industry stayed on the recovery path with sales growing 14.16% sequentially in July as more dealerships resumed operations with lifting of lockdown curbs while pent-up demand and preference for personal mobility continued to attract more buyers.
Sales grew to 264,442 vehicles, from 231,633 units in June, showed data issued on Wednesday by the Society of Indian Automobile Manufacturers (Siam). The industry body reports wholesales, or factory dispatches, every month and not retail sales.
Passenger car sales grew 7.16% sequentially in July to 130,080 units while utility vehicles recorded a 23.12% rise to 124,057 vehicles.
Vehicle dispatches fell sharply during April and May as the country battled the raging secincrease ond wave of Covid which forced shut dealerships and factories.
Most passenger vehicle makers reported sustained recovery in retail sales in the March quarter though a global shortage of semiconductor chips affected operations, leading to high waiting period on certain vehicles and depleted inventory. Companies thus began to operate in all three shifts when normal operations resumed from the second half of June last year. This faced a setback with the outbreak of the pandemic’s second wave earlier this year.
Maruti Suzuki, India’s largest carmaker, recorded a 9.83% sequential rise in domestic sales at 136,500 vehicles. Sales of Hyundai Motor India grew 18.63% to 48042 units in July and Tata Motors posted a 25.19% to 30,185 units.
Rajesh Menon, director eral, Siam, said the automo industry continues to face h headwinds in the form of gl chip shortage and steep ris commodity prices.
“Amidst such challenging uncertain business envi ment, the industry is tryin maximize production and s However, sales for the perio April to July 2021 for passe vehicle segment are still lo than the level of 2016-17; for wheeler segment, still lo than the level of 2010-11; three-wheeler segment has pushed back by many ye added Menon.
The auto industry came u pressure from the first wee April when Maharashtra be strict lockdown measures. D Haryana, Karnataka, Tamil N and others followed suit. Ma Suzuki, Hero Motocorp Hyundai and others ei stopped production or red output significantly.
Some like Bajaj Auto however, continued to ope with limited capacity to export orders. With a ste drop in infections, especial north and south India, m automakers have resumed o ations from the middle of M