Commercial vehicle sales in June surpassed the pre-Covid levels for the first time with a growth of 1.5% compared to the sales in June 2019, according to the Federation of Automobile Dealers Associations.
However, it grew a modest 0.4% year-on-year to 73,212 units in June, even as sales of light commercial vehicle fell 4.6%.
"The CV segment confronted mixed dynamics influenced by inconsistent demand, supply issues, government policies and external market factors," Manish Raj Singhania, president at FADA, said in a statement.
"Despite fluctuating demand and vehicle availability issues, the government's infrastructural push and coal mining growth spurred demand for heavy commercial vehicles, counteracted by high-interest rates and rising prices," he said.
The commercial vehicle in the coming months will be faced with a combination of positive market sentiment and potential impact of monsoon on infrastructural projects, a key reason for the uptick in sales.
In comparison to pre-Covid levels, the overall auto retail marked a marginal decrease of 3%, with two-wheelers as the sole laggard, the auto dealers' body said.
The two-wheeler sales rose 6.8% year-on-year to 13.10 lakh units in June, but fell 12% month-on-month as new model launches, festive promotions and seasonal factors couldn't lift sales.
The month-on-month fall in sales was also due to 56% decline in the electric two-wheeler sales, primarily due to the significant price hikes after the government reduced subsidies.
While the subsidy cut casts a shadow over EV sales, the two-wheeler market anticipates continued supply challenges and economic pressures, according to the dealers' body.
In the passenger vehicle category, the sales grew 4.8% to 2.95 lakh units amid a mixed landscape of lower demand for hatchbacks and slowing sales in other categories.
"With dealers noting sporadic supplies of popular models and aging product concerns of slow moving variants, the segment still experienced an uptick in demand for new models and anticipates rural sales to pick up further pace," FADA said.
Auto Retail Sales In June (YoY)
Passenger vehicle sales rise 4.8% to 2.95 lakh units.
Two-wheeler sales rise 6.8% to 13.10 lakh units.
Commercial vehicle sales up 0.4% to 73,212 units.
Three-wheeler sales grow 75.5% to 86,511 units.
Tractors sales grow 41% to 98,660 units.
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