Wholesale dispatches of passenger vehicles up 13.5% in December1 min read . Updated: 14 Jan 2021, 02:19 PM IST
- Dispatches of passenger vehicles increased by 13.5 % y-o-y to 2,52,998 units, as demand for compact cars and entry sport utility vehicles continued to rise across markets.
Domestic wholesale of passenger vehicles and two-wheelers increased for the fifth consecutive month in December as vehicle manufacturers increased inventory at dealerships after better than expected retail sales during the festival season in November depleted stocks.
Dispatches of passenger vehicles increased by 13.5 % y-o-y to 2,52,998 units, as demand for compact cars and entry sport utility vehicles continued to rise in the rural, semi-urban and some part of the urban markets, showed data released by Society of Indian Automobile Manufacturers (SIAM) on Thursday.
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Indicating a sustained increase in demand in urban areas, dispatches of utility vehicles grew by 19.75% y-o-y to 94,787 units, as companies like Maruti Suzuki India Ltd, Hyundai Motor India Ltd and Kia Motors India Ltd increased wholesale of their respective sport utility vehicles to meet rising demand.
Factory dispatches of passenger cars during the period rose by 8.3% year on year to 1,46,864 units.
The growth in dispatches comes as a result of low base in the corresponding period when auto makers witnessed contraction in consumer demand as a consequence of the economic slowdown and increase in vehicle prices due to change in emission and safety norms.
Automobile sales in India are counted as factory dispatches and not retail sales.
In the two-wheeler segment, scooter sales increased by 5.59% to 3,23,696 units while motorcycle sales grew by 6.6% y-o-y to 7,44,237 units as demand for entry and executive segment motorcycles recovered in the rural and semi urban markets. Overall, two-wheeler sales jumped by 7.4% to 11,27,917 units.
Sales of two wheelers picked up faster compared to the other segments due to quicker recovery in demand in the rural and semi urban areas compared to the metro and tier one cities. A good summer crop, decent monsoon and comparatively less spread of covid-19 infection have aided the recovery in rural markets.
Passenger vehicle retail sales picked up gradually from September on the back of sustained recovery in demand in the urban markets.
Siam did not provide wholesale dispatches of commercial vehicle during the month.