2 Wheelers, Smaller Cars Facing Affordability Issues: SIAM

New Delhi: Domestic sales of vehicles continue to fall behind in the last quarter of Financial Year 2021-22, with total sales in the passenger vehicle segment recorded at 2,79,501 units as of March 2022, a 4 percent dip from the previous year's sales.

According to the latest vehicle sales released by Society of Indian Automobile Manufacturers (SIAM), the PV sales in comparison to 2021 were recorded at 2,90,939 units. Similarly in other vehicle segments such as three-wheelers, there has been a marginal dip in 2022 March as well, with sales standing at 2,90,939 units in comparison to 2,90,939 units total three-wheelers sales in March 2021.

The data reflects that two-wheeler sales have taken a massive hit as the figures have dropped by 21 percent, with the current sales upto March 2022 being at 11,84,210 units versus 14,96,806 units in March 2021. The sales figure, however, remains higher than those recorded in FY 2019-20 where two-wheeler sales had dropped to 8,66,845 units.

Commenting on annual sales data, Mr Kenichi Ayukawa, President, SIAM, said, "Despite some recovery from a low base, sales of all four segments of the auto industry are below even 2018-19 level. While some segments like Commercial Vehicles and SUVs are seeing improvement in demand, the mass segments like two-wheelers and smaller cars are facing serious affordability issues. Ofcourse, our immediate challenge in most segments is semiconductor availability."

Talking about export performance, he said, "We are happy to share that all four segments of the industry have increased their exports. Infact, two-wheelers achieved their highest ever exports. It is good to see that Indian products are becoming more acceptable worldwide for their quality, cost and performance."

While in the two-wheeler sub-segment, motorcycle sales declined by 21 percent to 7,86,479 units as against 9,93,996 units in March 2021, and scooter sales were also down by 21 percent to 3,60,082 units from 4,58,122 vehicles a year ago. Total sales across categories have declined to 1,75,13,596 units in 2021-22 as against 1,86,20,233 units in 2020-21.

Commenting on the 2021-22 performance, Mr Rajesh Menon, Director General, SIAM said, "Overall Industry witnessed a de-growth of (-) 6% in FY22. All segments are facing supply side challenges and the industry is yet to see complete recovery following the disruptions it has been facing since early 2020. Passenger Vehicles, Commercial Vehicles and Three-wheelers have witnessed a growth compared to a low base of the industry in 2020-21, but the Two-Wheeler segments further declined by (-) 11% from the previous year."