Local market passenger vehicle sales fell 27% in October

Sales of passenger vehicles in the local market fell 27% last month despite growing consumer demand during the holiday season as insufficient availability of semiconductors impacted the production of several automakers, including market leaders Suzuki and Hyundai Motor India.

According to data available from the Society of Indian Automobile Manufacturers (SIAM) industry body, 226,353 passenger vehicles were shipped from factories to dealerships in October, up from 310,694 units in the corresponding period last year.

The drop in wholesale volumes in the industry would be less than 22% if we were to include sales from Tata Motors, which stopped reporting data on a monthly basis to SIAM.

sold 33,925 units last month.

Indian automakers report wholesale shipments from factories, not retail sales to customers.

While wholesale passenger car volumes fell 43% to 103,829 units in the month under review, those of commercial vehicles edged down 2% to 112,112 units.

With the recovery in economic activity, sales of three-wheelers last month rose 19% to 31,774 units, albeit on a weak basis.

Demand for two-wheelers remained under pressure, however. Sales of two-wheelers last month fell 25% to 1,541,621 units from 2,053,814 units sold a year ago.

Category october 2020 October 2021 % cash
Passenger vehicles * 3 10 694 2,26,353 -27
Three wheels 26,684 31,774 19
Two wheels 20.53 814 1541621 -25

Domestic sales only

* Does not include Tata engines

Source: Company of Indian Automobile Manufacturers (SIAM)

While sales of scooters fell 21% to 467,161 units, sales of motorcycles fell 26% to 1,017,874 units. Sales of two-wheelers, especially entry-level, were penalized due to higher acquisition costs following the switch to BS VI emission standards and the economic impact of the second wave of the pandemic in rural areas.

“Manufacturers were counting on the end of year celebrations to recover from the sharp drop in sales they suffered at the start of the 2021-2022 fiscal year. However, the shortage of semiconductors and the sharp rise in the cost of raw materials have been a major spoiler for the industry, ”said Rajesh Menon, Managing Director of SIAM. Passenger vehicles and two-wheelers were down last month compared to October 2020.

“Although the number of three-wheelers sold in October 2021 was higher than the previous year, it is still less than half of what was sold in October 2019,” he informed.