Society of Indian Automobile Manufacturers (SIAM) expects good demand in the festive season starting Saturday. In September, India’s passenger vehicle sales rose by 26.45pc to 272,027 units from the year prior, said SIAM representatives in a press conference on Friday.
Two-wheeler sale sales has jumped 11pc to 1.8mn units in September from the previous year, according to SIAM’s data. In Q2 (July-September) passenger vehicle sales increased 17.02pc to 726,232 units from the preceding year and two-wheeler sales is almost flat .from the prior year at 4.6mn units in Q2.
The Indian automotive industry is working hard amidst tough COVID-19 situation to increase production and sales, while ensuring the safety of customers and employees across the whole value chain, said Kenichi Ayukawa, President, SIAM.
In Q2 some segments have shown signs of recovery including passenger vehicles and two-wheelers, although on a very low base of previous year. SIAM is expecting good demand in the festive season starting Saturday. Auto loan interest rates are below 8pc, the lowest in a decade which is likely to encourage customers to purchase new vehicles. Commercial vehicle and three-wheeler sales are still in the negative growth zone, said Ayukawa.
The outlook of sales or industry growth cannot be predicted at this level because COVID-19 has never affected the economy before, said Ayukawa. Sales post the festive season, which is after Diwali, will portray a clearer picture if the auto sales are arising from fresh or pent up demand.
Ratings agency ICRA has forecast auto industry to pick up by FY2022. Segment wise, sales of passenger vehicles is expected to dip 22-25pc in FY2021 with the recessionary environment which has resulted in purchase deferrals. Passenger vehicle sales is likely to grow more than 15pc in FY2022.
Commercial Vehicle segment which is already disturbed will be facing headwinds in the coming year too. IN FY2021, heavy vehicle segment will be down 35-40pc and will grow 40-45pc in FY2022. Light commercial vehicles will have a better position and decline 17-20pc in FY21 and rise 15-20pc in FY2022.
Tractor growth is revised to grow 7-9pc in FY2021 which was previously forecast to grow 2-4pc. Farm segment stays firm as healthy demand is expected from the rural segment.