Festival season stock building boosts September dispatches of PVs, two-wheelers1 min read . Updated: 16 Oct 2020, 10:29 AM IST
- The growth is also the result of low base in the corresponding period a year ago when auto makers had seen demand decline because of economic slowdown and increase in vehicle prices due to change in emission and safety norms
NEW DELHI: Factory dispatches of passenger vehicles and two-wheelers rose for the second straight month in September in India, largely because of inventory building on expectation that retail demand will pick up during the October-December festival season.
Passenger vehicle wholesales rose 26.5% year-on-year to 2,72,027 units in September, as demand for compact cars and entry sport utility vehicles continued to rise in rural, semi-urban and some urban markets, according to data released by Society of Indian Automobile Manufacturers (Siam) on Friday.
Hinting at rising demand in urban areas, dispatches of utility vehicles grew 24.5% on year to 96,633 units. Factory dispatches of passenger cars during the period rose 28.9% to 1,63,981 units.
The growth is also the result of low base in the corresponding period a year ago when auto makers had seen demand decline because of economic slowdown and increase in vehicle prices due to change in emission and safety norms.
In the two-wheeler segment, scooter sales rose a marginal 0.08% to 55,66,205 units while that of motorcycles grew 17.3% to 12,24,117 units as demand for entry and executive segment motorcycles recovered in the rural and semi-urban markets. Total, two-wheeler sales jumped 11.6% to 18,49,546 units.
Sales of two-wheelers have recovered faster compared to the other segments due to quicker demand revival in rural and semi-urban areas. A good summer harvest, favourable monsoon rains and a relatively slower spread of covid-19 infection aided helped demand recovery in rural markets.
Siam did not provide wholesale dispatches data for commercial vehicles for September.