Festive Sentiment Drives September Auto Sales: Two-Wheelers, Passenger Vehicles Post Strong Growth

The Indian automobile industry recorded strong wholesale performance in September, with all key segments showing positive growth, led by a 6.7% year on year jump in total two-wheeler sales and a 4.4% rise in passenger vehicle sales.

According to the latest wholesale data released by the Society of Indian Automobile Manufacturers or SIAM for the month of September, the buoyancy was evident across the board, signaling a positive start to the festive season.

Overall passenger vehicle sales reached a total of 3.72 lakh units, marking a steady increase of 4.4% year on year compared to 3.56 lakh units dispatched in the same month last year.

The two-wheeler segment, a critical barometer of rural and entry-level market health, drove the largest volume growth. Total two-wheeler wholesales climbed 6.7% to 21.60 lakh units in September, significantly higher than the 20.25 lakh units sold in the corresponding month a year ago.

SIAM President Shailesh Chandra attributes the recent positive surge in the auto industry to the new GST rates, which he says brought "a lot of cheer and uplift to consumer sentiment" and released pent-up demand.

He noted that the festive period typically sees demand 1.3 to 1.4 times higher than normal. While all auto companies are currently maximizing production shifts to service this sudden demand spike, leading to short-term logistical overload, Chandra believes the momentum is strong.

A detailed breakdown of the segment reveals solid performances in both motorcycles and scooters, which contributed equally to the segment's overall strength. Total motorcycle sales grew by 5.8% year on year, increasing to 13.73 lakh units versus 12.98 lakh units. Outperforming this, the scooter segment registered a more aggressive growth rate of 9.1% year on year, with sales touching 7.33 lakh units, up from 6.72 lakh units in September last year.

The three-wheeler segment also maintained its positive trajectory, posting a healthy growth of 5.5% year on year. Total three-wheeler sales stood at 84,000 units in September, demonstrating an improvement from the 79,600 units sold in September of the previous year.

The consistent growth across the PV, two-wheeler, and three-wheeler segments collectively underscores a broad-based recovery and positive consumer sentiment in the market, providing an optimistic outlook for the remainder of the fiscal year