SIAM: Auto Sales Recover In July 2022, Register Y-o-Y Growth Of 9.6 Per Cent

The Society Of Indian Automobile Manufacturers (SIAM) has released the sales report for July 2022. The passenger vehicle segment witnessed a hike of 10.01 per cent selling 293,865 units last month compared to 264,442 units sold in the corresponding month a year ago. The PV category recorded a growth of 9.38 per cent selling 143,522 units in July 2022 compared to 130,080 units sold in the corresponding month a year ago. Sales of SUVs are also in recovery mode as the segment registered 9.52 per cent growth selling 137,104 units in July 2022 compared to 124,057 units sold in July 2021. In the same period, sales of Vans witnessed an uptick of 22.16 per cent selling 13,239 units as compared to 10,305 units sold a year ago. 

Sales of Vans witnessed an uptick of 24.9 per cent selling 13,239 units as compared to 10,305 units sold a year ago.

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Rajesh Menon, Director General, SIAM said, “In July 2022, sales in the passenger vehicle segment stood at 2.9 lakh units, in two-wheeler segment at 13.8 lakh units and in three-wheeler segment at 31 thousand units. The market for entry-level passenger cars, two-wheelers, and three-wheelers is yet to recover. Sales of two-wheelers in July 2022 are still below July 2016 numbers and sales of three-wheelers are still below July 2006 numbers.”

The passenger vehicle segment, on the other hand, witnessed a marginal hike of 10.5 per cent selling 293,865 units last month compared to 264,442 units sold in the corresponding month a year ago.

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The two-wheeler sales also received a slight push in the post-pandemic era with an 8.77 per cent growth selling cumulatively 1,381,303 units in July 2022 period as compared to 1,260,140 units sold in July 2021. The scooter segment saw a healthy hike of 22 per cent selling 479,159 units in July 2022 compared to 373,695 sold in the corresponding month a year ago. However, the motorcycle and step-through segment performed below expectations as it recorded in a downward trajectory with a 3.78 per cent de-growth selling 870,028 units last month compared to 837,166 units sold in July 2021. Moreover, 53 units of quadricycles were sold in June this year, compared to only 2 units sold in July 2021. 

The two-wheeler sales also received a slight push in the post-pandemic era with a 9.17 per cent growth selling cumulatively 1,381,303 units in July 2022 period as compared to 1,260,140 units sold in July 2021. 

Also Read: SIAM: Domestic Passenger Vehicle Sales Grow 185% in May 2022

Menon also shared his views on the increase in repo rates that will make auto loans costlier in the time to come as well as praised the push given to CNG vehicles by the Centre. He added, “Third hike in a repo-rates in a row, to rein in high inflation, will make auto loans costlier, making it more difficult for entry-level vehicles to recover. SIAM would also like to whole-heartedly thank the Government of India for the recent decision to allocate a higher amount of domestic gas for the CNG segment. This would significantly bring down the input cost of gas companies. In line with the Government’s intent, we hope that the gas companies would pass on the full benefit to the end consumers by reducing retail CNG prices.”

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Exports also had their share of snags, as the industry registered a growth of 5.59 per cent, distributing 449,796 units in July 2022 as compared to 474,940 units in the corresponding month a year ago. Overall, the auto industry recorded a growth of 9.6 per cent at 1,706,545 units as compared to 1,542,716 units sold in the same month last year. In terms of production, the Indian auto industry manufactured 2,197,954 units in July 2022, compared to 2,104,602 units in July 2021, a difference of 4.25 per cent.