Indian automotive sector is going through an interesting phase as 2-wheelers continue to see a drop in sales by 2.14% to 12,53,937 units, while the passenger vehicle (PV) segment sales are riding high by 44.68% at 2,64,442 units in July, according to the data released by Society of Indian Automobile Manufacturers (SIAM).
However, sales during April-July 2021 for the PV segment are still lower than the corresponding period in FY17 and for the 2W segment, still lower than FY11.
The primary reasons behind the gap in recovery between PV and 2W segment are an adverse impact on rising vehicle prices and high petrol prices. These factors make 2W unaffordable to the buyers who have been undergoing income loss due to low economic activity.
While the PVs see an uptick in sales as fear of viruses leading people to invest in personal transportation, industry experts say the contrast between the two segments is significant because buyers in these segments are impacted differently, and the economy is recovering unevenly.
In terms of overall sales, including PVs, 2Ws and 3Ws, the auto industry clocked a 4.02% rise in domestic sales at 15,36,269 units in July 2021 compared to 14,76,861 units in the same month last year. It is also to be noted that auto sales do not include commercial vehicles sales as the data for this segment is released every quarter.
| July 2021 Domestic Sales | 2020 | 2021 | %Change |
| Passenger Cars | 1,02,773 | 1,30,080 | 26.57 |
| Utility Vehicles(UVs) | 71,384 | 1,24,057 | 73.79 |
| Vans | 8,622 | 10,305 | 19.52 |
| Total Passenger Vehicles (PVs) | 1,82,779 | 2,64,442 | 44.68 |
| Passenger Carrier | 6,733 | 11,181 | 66.06 |
| Goods Carrier | 5,995 | 6,707 | 11.88 |
| Total Three Wheelers | 12,728 | 17,888 | 40.54 |
| Scooter/ Scooterettee | 3,34,288 | 3,66,292 | 9.57 |
| Motorcycle/Step-Throughs | 8,88,520 | 8,37,096 | -5.79 |
| Mopeds | 58,403 | 49,279 | -15.62 |
| Electric Two-Wheelers | 143 | 1,270 | 788.11 |
| Total Two Wheelers | 12,81,354 | 12,53,937 | -2.14 |
| Quadricycle | - | 2 | |
| Grand Total of All Categories | 14,76,861 | 15,36,269 | 4.02 |
Rajesh Menon, Director General, SIAM, said the Indian automobile industry faces heavy headwinds in global semiconductor shortage and a steep rise in commodity prices.
“On one hand, the industry is managing such supply chain challenges while ensuring the safety of its people, and on the other hand, the industry is also keeping a close eye on the onset of the third wave in India and across the world. Amidst such a challenging and uncertain business environment, the industry is trying to maximise production and sales,” he added.
The total production of PVs, 2Ws, 3Ws and quadricycles in July 2021 was 2,099,035 units.