Entry-level automobile sales under pressure in Q1 as commodity costs mount: SIAM

Representative Image: Reuters

While the overall vehicle sales have improved in the first quarter of the fiscal year 2022-23 as compared to the year-ago period, the entry-level automobile sales are under pressure amid the mounting commodity costs, according to the Society of Indian Automobile Manufacturers (SIAM).

As compared to the pre-pandemic phase, the small car sales (including brands such as Alto, and S-Presso) dropped by 59 percent to 55,000 units, as compared to 1.35 lakh units in the corresponding quarter of 2018-19, CNBC TV18 reported on July 13, citing the SIAM data.

The sale of scooters of up to 125 cc dropped by around 36 percent to 11.50 lakh units in Q1 FY23, as compared to the sale of 18.09 lakh units clocked in the same quarter of 2018-19.

In the category of motorcycles up to 110 cc, the sale dropped by 42 percent to 22.12 lakh units in the April-June quarter, as compared to 42.77 lakh units in the same period of 2018-19.

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Since Q1 FY21, the prices of aluminum have jumped by 89 percent, zinc by 100 percent, hot rolled steel by 85 percent, and rhodium by 99 percent, the auto manufacturers' body reportedly said.

The overall domestic sales in Q1 FY23 increased to 4,935,870 units as against 3,190,202 units in the year-ago period, marking a 54.7 percent jump, as per the SIAM data, ET Auto reported. However, when compared to the pre-pandemic phase of Q1 FY19, the numbers marked a decline of 19 percent as the industry had then clocked a total sale of 6,084,478 units, the report added.