Auto sales rise in 2022, but still well below old records: SIAM
After a tumultuous few years of lackluster sales in the country, the total passenger vehicle sales figure in 2022 has taken a huge leap. The apex national non-profit body representing all major vehicle and vehicle engine manufacturers SIAM – Society of Indian Automobile Manufacturers recently released the total sales volume of automakers in the country and reveals that total vehicle sales tourism (PV) in May 2022 increased by 185% year-on-year (YoY) to 251,052 units.
In May 2022, the total number of passenger cars sold exceeded the pre-pandemic level of May 2019. In May 2022, 251,052 passenger cars were sold, compared to 226,975 in the same month in 2019. However, passenger car sales tourism remain lower than in 2018. level, according to SIAM.
Also, it was reported that three-wheeler sales in the country increased significantly with 28,542 units sold in May 2022 compared to 1,262 units sold in May 2021. While two-wheeler sales increased more by 253% to reach 1,253,187 units in May 2021, compared to 354,824 units in May 2021. However, sales of three-wheelers and two-wheelers have still not exceeded the pre-pandemic level of May 2019. In May 2022, 28,542 three-wheelers were sold, compared to 51,650 in the same month of 2019. In May 2022, 1,253,187 three-wheelers were sold, compared to 1,725,204 in the same month of 2019.
Overall, India’s automotive sector achieved total sales of 1,532,809 units in May 2022. The industry is yet to surpass its pre-pandemic peak of 2,004,137 units sold in April 2019. However , the industry grew 245% year-on-year to 444,131 units sold. in May 2020.
Rajesh Menon, Managing Director of SIAM, said: “Sales of two-wheelers and three-wheelers continue to stagnate in the month of May 2022, as they are even lower than they were 9 and 14 years ago. years, respectively. Passenger vehicle segment sales are also still below 2018 levels,” he added, “Recent government interventions would help ease supply-side challenges, but the second rate hike repo by RBI and rising third party insurance rates could become more difficult for customers, impacting demand,”
India’s automotive sector has sold 502,703 passenger vehicles, 49,480 three-wheelers and 2,415,769 two-wheelers so far in FY23. The total number of units sold in FY23 is currently 2,968,006, a considerable increase from the 1,717,839 units sold in April-May 2021. However, this figure is still below the pre-pandemic level of 3,923,165 units sold in April-May 2019.
Last month, after a two-year hiatus, the Indian government announced an increase in insurance premiums for third-party car insurance. Following this news, some industry experts have raised concerns about the government’s decision as they believe it will negatively impact auto sales, especially in the two-wheeler segment, as it is already struggling with weak market demand. Rajesh Menon also added that “this sharp rise could particularly impact demand from mass segments like two-wheelers and small cars, which are already struggling to recover due to huge cost increases in recent past due to rapid regulatory changes”.