Domestic PV sales rise 2% in June; up 9% in Q1: SIAM

New Delhi: Domestic passenger vehicle wholesales witnessed a 2 per cent year-on-year rise to 3,27,487 units in June, as demand remained strong, especially for the entry-level utility vehicles, industry body SIAM said on Wednesday.

Passenger vehicle dispatches to dealers in June 2022 stood at 3,20,985 units.

The Society of Indian Automobile Manufacturers President Vinod Aggarwal said the passenger vehicle segment continues to perform well on the back of strong demand.

The only weak spot is the drop in sales of hatchbacks, where buyers are migrating to entry-level sports utility vehicles, he said.

"There is no concern whatsoever with the overall PV segment as it is holistically doing well. Demand has also picked up in rural areas and that should further aid it... going forward it looks like a very positive scenario as far as PV sales are concerned," Aggarwal said.

The total two-wheeler sales rose by 2 per cent to 13,30,826 units last month, as against 13,08,764 units in the year-ago period.

Commenting on the performance of the segment, Aggarwal said the sales have started to pick up but it still remains below the previous peak level.

Last fiscal, the total two-wheeler sales stood at 1.56 crore units, which remains low as compared to the peak level of 2.1 crore units a few years back, he added.

"We expect the rural economy to pick up and it would also be positive for the overall two-wheeler segment," Aggarwal said.

Total three-wheeler wholesales saw a nearly two-fold jump in sales to 53,019 units in June, as compared to 26,701 units in June 2022, it added.

During the April-June quarter, passenger vehicle sales rose to 9,95,974 units, up 9 per cent, as against 9,10,495 units in the same period of the last fiscal, the data showed.

Total two-wheeler sales during the June quarter rose by 11 per cent to 41,40,964 units, as against 37,24,533 units in the year-ago period.

Commercial vehicle sales, however, declined to 2,17,046 units, from 2,24,488 units in the same quarter last year.

Aggarwal said the dip in sales in the June quarter is not a matter of concern as the overall economic fundamentals of the country remain strong.

Total three-wheeler dispatches rose to 1,44,475 units in April-June quarter, as against 76,293 units in the same period last fiscal.

Total sales in the June quarter rose to 54,98,602 units, as compared to 49,35,910 units in April-June period of the last financial year.

"Overall the passenger vehicles, two-wheelers and three-wheelers have performed well in Q1 of 2023-24, although some sub-segments have shown slight momentary decline, compared to Q1 of last year," Aggarwal said.

With expectations of a reasonable monsoon, which has now covered most parts of the country, coupled with lowering inflation, the industry expects the economy to continue to grow, which in turn should help the auto sector, he added.

However, high interest rates remain a concern, he noted.

When asked about the GST notification and its impact on the industry, Aggarwal said the notification is yet to come.

"We have to study the implications of the notification," he said.

On Tuesday, the Goods and Services Tax (GST) Council decided that the definition of an SUV will include only the length (4 metres and above), engine capacity (1,500 cc and more), and ground clearance (unladen ground clearance of 170 mm and more).