Manufacturers expect good demand during the festive season that kicks off from Friday.
Passenger vehicle dispatches to the dealers recorded strong double digit growth of 26.45% in September with manufacturers anticipating good demand during the festive season that kicks off from Friday.Also read: July sales hint at auto sector revivalPassenger vehicle wholesale sales increased to over 2.72 lakh units during the last month as compared to about 2.15 lakh units in September 2019, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Friday.While car sales rose 28.92% to over 1.63 lakh units in September 2020 from about 1.27 lakh units in the year-ago month, sales of utility vehicles and vans were up 24.5% to 96,633 units and 10.64% up 11,413 units, respectively.Two-wheeler sales grew 11.64% to over 18.49 lakh units as against over 16.56 lakh units in the same month last year. Data showed a year-on-year growth of 17.30% for motorcycles to over 12.24 lakh units and a marginal increase in sales of scooters at about 5.56 lakh units.Commercial vehiclesFor commercial vehicles, SIAM releases sales data for the full quarter. As per the data, commercial vehicle sales, which are usually seen as an indicator of economic activity in the country, fell 20.13% to about 1.33 lakh units in July-September 2020 quarter as compared with about 1.67 lakh units in same period of 2019.Kenichi Ayukawa, SIAM president, said that the Indian automotive industry was working hard amidst the tough COVID-19 situation to increase production and sales, while ensuring the safety of customers and employees across the whole value chain.“In quarter-2 some segments have shown signs of recovery. Passenger vehicles and two-wheelers are positive, although on a very low base of previous year. We are expecting good demand in the festive season starting tomorrow,” he said, adding that thanks to the government intervention, auto loan interest rates are below 8%, the lowest in a decade, and that should encourage customers to purchase new vehicles.Three-wheeler sales in the last month continued to be in the negative zone, nosediving nearly 72% to 18,640 units in September 2020 as against 66,362 units in the year-ago month. Rajesh Menon, SIAM Director General, said “…in the quarter, July-September 2020, passenger vehicles grew by 17.02%, two-wheelers grew by 0.17%, three-wheelers saw a de-growth of 74.63%…compared to the same Quarter in 2019.”