Following a few tumultuous years of lacklustre sales in the country, the total sales figure of passenger vehicles in 2022 has showcased a huge jump. The apex non-profit national body representing all major vehicle and vehicular engine manufacturers SIAM – Society of Indian Automobile Manufacturers recently released the total sales volume of the automakers in the country and it reveals that total passenger vehicle (PVs) sales in May 2022 rose by 185 per cent year-on-year (YoY) to 251,052 units.
In May 2022, the total number of PVs sold topped the pre-pandemic level of May 2019. In May 2022, 251,052 passenger automobiles were sold, compared to 226,975 in the same month in 2019. However, passenger car sales still remain below the 2018 level, according to SIAM.
Furthermore, it was reported that the three-wheeler sales in the country have increased dramatically, with 28,542 units sold in May 2022 compared to 1,262 units sold in May 2021. While two-wheeler sales increased by more than 253% to 1,253,187 units in May 2021, compared to 354,824 units in May 2021. However, the sales of three-wheelers and two-wheelers have still failed to exceed the pre-pandemic level of May 2019. In May 2022, 28,542 three-wheelers were sold, compared to 51,650 in the same month in 2019. In May 2022, 1,253,187 three-wheelers were sold, compared to 1,725,204 in the same month in 2019.
Overall, the Indian vehicle sector achieved total sales of 1,532,809 units in May 2022. The industry has yet to surpass its pre-pandemic high of 2,004,137 units sold in April 2019. However, the industry grew by 245 percent year on year to 444,131 units sold in May 2020.
Rajesh Menon, Director General, SIAM said, “Sales of Two-Wheelers and Three-Wheelers continue to remain sluggish in the month of May 2022, as they are even below of what it was 9 years and 14 years ago, respectively. Sales of Passenger Vehicle segment are also still below 2018 level,” He further added, “Recent Government interventions would help in easing of the supply-side challenges, but second hike in repo-rates by RBI and increase in 3rd Party Insurance Rates, could become more challenging for the customers, thereby impacting demand,”
The Indian automotive sector has sold 502,703 passenger vehicles, 49,480 three-wheelers, and 2,415,769 two-wheelers so far in FY23. The total number of units sold in FY23 is presently 2,968,006, a considerable rise over the 1,717,839 units sold in April-May 2021. However, this figure is still lower than the pre-pandemic level of 3,923,165 units sold in April-May of 2019.
Last month following a two-year intermission, the government of India announced an increase in the insurance premiums for third-party motor insurances. Following this news, some of the industry experts raised their concerns over the decision of the government as they believe that it will adversely impact the sales of automobiles, especially the two-wheeler segment as it is already struggling with low market demand. Rajesh Menon also added that “This steep hike may especially impact demand of mass segments like two-wheelers and smaller cars, which are already struggling to recover owing to huge cost increase in the recent past because of rapid regulatory changes,”