July auto sales rise 10% YoY as chip availability improves: SIAM
13/08/2022
new delhi, aug 12: Automobile dispatches to the domestic market in July and comprising all categories increased 10 per cent year-on-year, said an association of manufacturers on Friday.
Automobile firms in India count dispatches to dealers as sales. A strong run in passenger vehicles (PV) including cars, vans and utility vehicles helped sales, said the Society of Indian Automobile Manufacturers (Siam) in its monthly statement.
Improved availability of the semiconductors helped PV makers to ramp up production. PV sales during the month rose 11 per cent to 293,865 units from 264,442 units a year ago as production increased to 358,888 from 333,369. Cumulative automobile sales (excluding commercial vehicles) rose to 1706,545 units compared to 1542,716 units during the month, the industry body said. Improved sales of three- and two-wheelers came on a low base and volumes were lower than in 2006 and 2016 respectively, said Rajesh Menon, director general of SIAM, in the statement. “The market for entry-level passenger cars, two-wheelers and three-wheelers are yet to recover.” The third hike in repo rate to rein in high inflation will make auto loans costlier, making it more difficult for entry-level vehicles to recover, he said. The government’s recent decision to allocate a higher amount of domestic gas for CNG will help CNG-powered vehicles. “We hope that in line with the Government’s intent, the gas companies would pass on the entire benefit to the end consumers by reducing retail CNG prices,” said Menon.
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