Good News For Auto Industry; Sales Of Passenger Vehicles Increase By 18 Percent In Feb

Passenger vehicles sales up 18% in February: According to the industry body's latest data, in February 2021, total sales of passenger vehicles, three-wheelers, two-wheelers, and quadricycles, increased by 15.36% to 22.5 lakh units, up from 19.5 lakh in February 2020.

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Showing a strong comeback in February, India's passenger vehicle (car, SUV, and vans) sales increased 17.92% to 2,81,380 units compared to 238,622 units the same month last year, the auto industry body Society of Indian Automobile Manufacturers (SIAM) said on Wednesday.

According to the industry body's latest data, in February 2021, total sales of passenger vehicles, three-wheelers, two-wheelers, and quadricycles, increased by 15.36% to 22.5 lakh units, up from 19.5 lakh in February 2020.

Two-wheeler sales during February went up by 10.2% to 14,26,865 units, while three-wheeler sales fell 33.82% during the month to 27,331 units.

However, the total sales from the April to February period of passenger vehicles were still below 2015-16 levels, and for two-wheelers, it is below 2014-15 levels.

Total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycle in April- February 2021 fell 18.92% to  19,572,565 units as against 24,140,891 units in April- February 2020.
 
In the last 11 months, the passenger vehicle sales fell by 10.35% to 2,335,808 units; three-wheeler sales fell by 69.77% to 184,267 units, and two-wheeler sales fell by 17.69% to 13,622,581 units.

"Sales of Three-Wheelers continued to suffer a de-growth of (-)33.82%, compared to February 2020, primarily on account of lower off-take of Passenger Three-Wheelers. Supply chain challenges including rising price of steel, unavailability of semi-conductors and higher container charges, continue to be obstacles in smooth functioning of the industry," Mr. Rajesh Menon, Director General, SIAM.

According to Mr. Menon, in February 2021, 2.81 lakhs passenger vehicles were sold, clocking a CAGR growth of just 3.29% over the previous highest sales in the month of February, in the year 2018 of 2.55 lakhs, while in February 2020, the total sales were 2.39 lakhs.

As far as two-wheelers are concerned, 14.27 lakh units were sold in February 2021, which results in a de-growth of (-) 5.41% CAGR from the previous highest sales in the month of February, in the year 2018 of 16.86 lakhs, while in February 2020, the sales of two-wheelers were 12.95 lakhs units, Mr. Menon added.

Maruti Suzuki India (MSI), the country's largest carmaker, registered an 8.27% increase in sales last month to 1,44,761 units.

On the other hand, Hyundai Motor India posted a 28.97% rise in dispatches last month, totaling 51,600 units.

In December 2020, the auto sales increased for the first time this fiscal year, only to drop again in January 2021.

In the third quarter of FY 20-21, India's economy resurfaced to growth territory, with a 0.4 percent increase in GDP.