BackPassenger vehicle sales in India decline by over 2% in 2020-21: Report
Total commercial vehicles sales declined by 20.77% to 5,68,559 units last financial year, as against 7,17,593 units in 2019-20
PremiumThe sales of passenger vehicles in India has reduced by over 2% in FY 2020-21, according to data released by the auto industry body, Society of Indian Automobile Manufacturers (SIAM). Covid-19 added to the industries existing woes last year to further slow it down.
According to the data released by the industry body, passenger vehicle wholesales declined by 2.24%. The industry registered sales of 27,11,457 units as compared to 27,73,519 units in 2019-20.
Two-wheeler dispatches also declined in the same time period. Sale of units from manufacturer to dealer reduced by 13.18%. In FY 19-20, the industry provided 1,74,16,432 units to dealerships, whereas in FY 20-21 the industry only registered wholesale of 1,51,19,387 units.
Total commercial vehicles sales declined by 20.77% to 5,68,559 units last financial year, as against 7,17,593 units in 2019-20.
The sale of three-wheelers saw a substantial drop of 66.06% after the pandemic put a halt to most public movement in the first half. In the 2020-21 fiscal 2,16,197 units were sold to dealers, as against 6,37,065 units in 2019-20.
Vehicle sales across categories declined by 13.6% to 1,86,15,588 units, as against 2,15,45,551 units in the year-ago period.
"On the sales front, a deep structural slowdown in the industry even before the pandemic, combined with the impact of COVID-19 in 2020-21, has pushed all vehicle segments back by many years. Recovery from here will require time and efforts, by all stakeholders," SIAM President Kenichi Ayukawa said.
There is uncertainty in the value chain owing to semiconductors, lockdowns and raw materials, he added.
"In an environment of uncertainty, instead of trying to predict the future, we will all work hard to create it," Ayukawa noted.
SIAM has cited data in the past to show that the pandemic is not the only reason for the auto sector slowdown, which is facing deeper structural issues that need attention.
According to the findings of a research conducted by the industry body, compounded annual growth rates of all segments, including passenger vehicles, commercial vehicles, three-wheelers and two-wheelers have witnessed a continuous drop over the last three decades.
Elaborating further SIAM Director General, Rajesh Menon said in the last fiscal there was a de-growth in sales of all segments compared to the previous years.
"If we look at the fourth quarter January-March 2021 sales which might include some deferred sales from previous quarters, only passenger vehicle segment at 9.34 lakh sales was marginally above the previous high of January-March 2018 period at 8.62 lakh units," Menon added.
Commercial vehicles sales at 2.1 lakh in January-March period of 2021 were below 2.82 lakh in January-March period of 2018, Menon noted.
"Similarly, two-wheeler sales in January-March 2021 stood at 43.54 lakh against January-March 2018 figures of 51.13 lakh units. Three-wheeler segment was the worst-hit with sales of 86,000 units in the period under review as compared to 1.97 lakh in January-March 2018," Menon said.
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