According to the latest data by the industry body, Society of Indian Automobile Manufacturers (SIAM), the first quarter of this financial year (April-June 2021) witnessed 113% growth in total domestic sales to 3,180,039 units as against 1,492,612 units in Q1 FY 2020-21. However, the industry clocked 6,084,478 units in the same quarter of 2019-2020, which is a decline of 48% when compared to the current fiscal year.
During the fiscal year 2020-21, the first wave of Covid-19 hit the country in March and the auto industry witnessed a historic zero sales in April 2020 due to a nationwide lockdown. The second wave of the global pandemic peaked in mid-April of this year, due to which several states were under lockdown until May 2021.
Total passenger vehicle segments moved to positive with 320% growth in domestic sales at 646,272 units in April-June 2021 quarter as compared to 153,734 units sold in the corresponding quarter last year.
|Domestic Sales||April-June 2019||April-June 2020||April-June 2021|
*Passenger vehicles sales data does not include BMW, Mercedes and Volvo Auto while Commercial vehicles sales do not include Daimler and Scania.
About the Q1 FY22 performance, Kenichi Ayukawa, President, SIAM, said, “In Quarter 1 this year, the Indian automobile industry came forward to support the Government in its fight against the Covid second wave. Many OEMs shut down their manufacturing plants to make oxygen available for medical purposes. They also contributed towards augmenting oxygen supply to hospitals, supporting health care facilities and helping local communities. Due to various lockdowns, many dealers could not operate, leading to subdued sales.”
“Lately, with ease in restrictions, OEMs have carefully resumed operations in a phased manner. We are thankful to the Government for improving the rate of vaccination in the country, rolling out a fiscal stimulus package for the worst hit sectors and including wholesale and retail trades under MSMEs,” he added.
“The Indian Automobile Industry is facing headwinds like steep increase in commodity prices, semiconductor shortage, and fear of a third Covid wave. In such an uncertain environment, the Industry is working hard to maximize production and sales while ensuring safety of our people and customers,” Ayukawa said.
For the first quarter of FY22, the Compound Annual Growth Rate (CAGR) for all the segments was negative with the maximum degrowth in the three wheeler segment at 46.8% and the least degrowth in the passenger vehicle segment at 9.6%.
Total commercial vehicles domestic sales witnessed 105,800 units during the quarter under review, as against 31,636 units in the first quarter of the previous year. Total M&HCV sales for the first quarter of FY22 clocked 29,158 units, while total LCV sales stood at 76,642 units.
Two-wheeler clocked 2,403,591 units in Q1 FY22 as against 1,294,509 units in Q1 FY21. The motorcycle segment witnessed 1,740,198 unit sales in the quarter under review, while scooter sales stood at 592,445 units.
Total three-wheeler domestic sales saw 24,376 units in Q1 FY22 for the domestic market as against 12,760 units in Q1 FY21.
Rajesh Menon, director general, SIAM, said, “In Quarter1 last year (FY21), Indian Automobile Industry had less sales because of the nation-wide lockdown induced by the first wave of the pandemic. This year too, in Q1 (FY22) sales were subdued due to the impact of the Covid second wave.”
“Sales of all segments were lower in the past several years, barring Q1 of FY21. Passenger vehicle segment registered sales of 6.46 lakh units in this quarter, which is lowest in the past 7 years, barring Q1 of FY 21. Sales of 1.06 lakh units for the commercial vehicle segment and 24.04 lakh units for the two-wheeler segment, were lowest in the past 12 years, barring Q1 of FY 21. Three-wheeler segment was the worst-hit with sales of just about 24,000 units, which has been lowest in more than two decades, barring Q1 of FY21,” Menon added.
While SIAM reports the wholesale dispatches of OEMs as sales, FADA reports retail numbers from dealerships.