Auto sales zoom 55% in Q1 FY23 on a low base; still down by 19% from Q1 FY19, Auto News, ET Auto

Consultant Picture
New Delhi: Auto OEMs in April-June quarter of the on-going monetary 12 months 2022-2023 noticed year-on-year enchancment throughout segments on the decrease base of the identical quarter a 12 months in the past which was marred by the second Covid wave.In accordance with the most recent knowledge by the industry physique, Society of Indian Vehicle Producers (SIAM), the primary quarter of FY23 witnessed 54.7% leap in whole home gross sales to 4,935,870 models in comparison with 3,190,202 models in the identical interval in FY22. Nevertheless, the business clocked 6,084,478 models in the identical quarter of 2019-2020, which is a decline of 19% when in comparison with the present fiscal 12 months. The passenger automobile (PV) section gross sales grew by 41% within the first quarter (Q1) of the present fiscal and stood at 910,431 models from 646,272 models offered throughout the corresponding interval of FY22, business knowledge confirmed. All through the Q1, the demand momentum for PVs was sustained amid enchancment in chip availability. Consultants anticipate PVs to remain at this degree attributable to the next open order guide with all OEMs coupled with a gradual improve in PV quantity with the supply-side constraints and commodity value inflation beginning to soften. Throughout the section, whereas off-take of hatchbacks and small vehicles grew by 22% at 411,441, gross sales of SUVs shot up by 62.4% at 464,558 in Q1 FY23. The off-take of vans grew by 50% and stood at 34,432 models.Owing to the wedding season demand, gross sales of two-wheelers y gained 54.3% at 3,724,533 models from 2,413,608 models offered within the like interval of FY22. Scooter gross sales in Q1 surged 100% to 1,207,903 models, whereas motorbike gross sales additionally grew by 38% to 2,405,228 models.In accordance with Rajesh Menon, Director Normal, SIAM, not too long ago the federal government has taken vital measures to ease the inflationary stress and assist the widespread man by lowering central excise obligation on petrol & diesel and altering the obligation construction to reasonable costs of metal and plastic.”The Indian Vehicle Business appreciates and thanks the federal government for these efforts. Business additionally keenly appears ahead to related assist on CNG costs which has seen exponential improve within the final 7 months. Assist on CNG costs would assist the widespread man, facilitate public transport and can allow a cleaner atmosphere,” he added.Pushed by higher fleet utilization, growing alternative demand and enchancment within the bus section, the business automobile section gross sales for Q1 stood at 224,512 models from 105,800 models throughout the corresponding quarter of FY22.Gross sales of three-wheelers additionally zoomed 211% within the quarter underneath overview to 76,293 models from 24,522 models in Q1 of FY22.Total exports within the quarter underneath overview went up marginally by 0.45% to 1,425,967 models from 1,419,471 models shipped out throughout the corresponding quarter of FY22Entry-level section underneath pressureDemand for entry degree vehicles and two-wheelers in India have been underneath stress for greater than three years now. The business has been scuffling with its personal points like chip scarcity, commodity inflation and extra, coupled with a number of worth hikes of the merchandise. Auto sales zoom 55% in Q1 FY23 on a low base; still down by 19% from Q1 FY19
From the height of Q1 FY19, the gross sales of mini vehicles has dropped by over 59% as many of the first-time consumers, largely in city areas, are in a temper to assume massive and are choosing the extra thrilling and loaded autos, giving the entry numbers a miss.Within the two-wheeler section, scooters as much as 125cc noticed a drop of 36% in Q1 FY23 over the identical quarter in FY19. Mass section bikes of as much as 110cc additionally tanked 42% from the height of FY19 in Q1 FY23 majorly on account of inflated enter value and excessive gasoline costs.Going ahead, it’s estimated {that a} good monsoon will additional enhance Kharif yields, thereby bettering farmer incomes, which bode properly for motorbike demand within the rural market.

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In accordance with FADA, the PV section continued to see sturdy progress. Ready intervals, particularly within the compact SUV and SUV section, continued to stay excessive. New automobile launches are seeing sturdy reserving. The CV section confirmed energy for the primary time in June 2022 because it grew by 4% when in comparison with June’19, a pre-Covid-19 month. Bus section together with LCVs is exhibiting good traction. The very best year-on-year progress was noticed for the three wheelers section. The 2W section stays as a explanation for concern and isn’t selecting up as anticipated, FADA mentioned.

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