Despite December Growth, Car Sales Behind By Nearly A Decade So Far This Financial Year, Says SIAM

Factory-gate shipments of cars and utility vehicles rose for the fifth straight month as automakers pushed inventory to dealers anticipating pre-buying ahead of January price hikes across models.

Last month, Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. had said they would increase prices of vehicles from January to offset the adverse impact of rising input costs. That probably would have led companies to anticipate a surge in pre-buying during the month when consumers usually stay away from purchasing new vehicles as new year’s registration date offers a better resale value.

Any recovery is crucial for automakers that were battling a slowdown even before the pandemic struck and witnessed a complete washout in the early part of the Covid-19 lockdown. And while vehicle registrations rose over the year earlier in December, they lagged the pre-Covid levels.

Two-Wheeler

• Scooter sales rose 5.59% year-on-year to 3.06 lakh units.

• Motorcycle sales increased 6.65% to 7.44 lakh units.

• Total two-wheeler sales jumped 7.42% to 11.27 lakh vehicles.

• Total three-wheeler sales slumped 58.87% to 22,126 units.

Wholesales of commercial vehicles fell 1.12% over the year earlier to 1.93 lakh units in the quarter ended December. (SIAM releases sales data for commercial vehicles quarterly).

“The market situation is dynamic and uncertain. Industry is facing a shortage of semiconductors, steel and shipping containers. There is also an impact of price increase of steel, logistics and other raw materials," Ayukawa said. "The industry is working hard to get back to better volumes and better business health while ensuring safety and well-being of people across the whole value chain."