Higher acquisition cost, supply side constraints subdue March auto sales

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Higher acquisition cost, along with supply side constraints, subdued India’s domestic auto sector sales in March 2022 on a year-on-year basis.

The dat, furnished by the Society of Indian Automobile Manufacturers (SIAM) showed that sales of passenger vehicles fell to 279,501 units in March as compared to 290,939 units sold during the corresponding month of 2021.

Segment-wise, a total of 138,031 passenger cars were sold in the domestic market in March, down from 156,985 units sold in the like period of 2021. However, UV sales rose to 132,032 units from 122,350 units, while, on the other hand, the off-take of vans declined to 9,438 units from 11,604 units in the year-ago period.

As per the data, two-wheelers’ sales were lower in March 2022 at 1,184,210 units from 1,496,806 units sold in the same month of 2021.

Further, three-wheelers’ sales during the month under review slipped to 32,088 units from 32,310 units sold during March 2021.

Overall, the domestic automobile sectors’ off-take representing the sales of passenger vehicles, two-wheelers, three-wheelers and quadricycle fell to 1,495,848 units from 1,820,062 units sold during the same period of last year.

The data, however, showed that exports were higher on a YoY basis. The overall exports, including PVs, two and three-wheelers and quadricycles rose to 451,058 units from 436,397 units during the same period of last year.

Segment-wise, a total of 3,069,499 passenger cars were sold in the domestic market in FY22, up from 2,711,457 units sold in the like period of previous fiscal. In contrast, the two-wheelers’ sales were lower in FY22 to 13,466,412 units from 15,120,783 units sold in previous fiscal.

“Despite some recovery from a low base, sales of all four segments of the auto industry are below even 2018-19 level,” SIAM President Kenichi Ayukawa said.

“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.”

SIAM Director General Rajesh Menon said: “Overall industry witnessed a de-growth of 6 per cent 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-Wweeler segments further declined by (-) 11 per cent from the previous year.”

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