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Moneycontrol
Last Updated : Oct 16, 2020 09:54 PM IST | Source: Moneycontrol.com

Sales of cars, SUVs up 31% YoY in September, biggest jump in 2020

This is the second-consecutive monthly year-on-year growth recorded by the passenger vehicle and two-wheeler segment

Sales of cars and SUVs jumped 31 percent year-on-year (YoY) in September, the most for any month in 2020 on the back of increased dispatches by manufacturers to their dealers to cater to the festive demand.

This is the second-consecutive monthly YoY growth recorded by the segment. If compared to the average monthly sales of 231,000 units of last year the passenger vehicle segment has already gone past the pre-COVID-19 levels.

As per data shared by the Society of Indian Automobile Manufacturers (SIAM) passenger vehicle (car, SUV and van) sales in September grew to 293,226 (272,027 + 21,199 of Tata Motors) units as compared to 223,221 (215,124 + 8,097 of Tata Motors) units sold in the same month last year. The SIAM data does not have Tata Motors sales data which the company issued separately to the stock exchanges.

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Sales of passenger cars grew by 29 percent while utility vehicles grew by 25 percent and vans by 11 percent during September. August saw a 14 percent increase in sales to 215,916 units.

Two-wheeler sales also logged the biggest growth in this year’s volumes in a month in September while also growing for the second consecutive month. The segment clocked a growth of nearly 12 percent to 1.84 million units in September as against 1.65 million units sold in the same month last year.

Motorcycles made up for the lack of growth in scooters during September. Motorcycles grew by 17 percent to 1.22 million units while scooters recorded a flat growth to 556,205 units.

Kenichi Ayukawa, President - SIAM, said, “In quarter 2 some segments have shown signs of recovery. Passenger Vehicles and Two-Wheelers are positive, although on a very low base of 2019. We are expecting good demand in the festive season starting tomorrow. Thanks to government intervention, auto loan interest rates are below 8 percent, the lowest in a decade and that should encourage customers to purchase new vehicles. Commercial vehicle and three-wheeler sales are still in the negative growth zone.”

SIAM could not share monthly sales data of commercial vehicles (CV) because some of its members do not share the data. But during the July-September quarter the CV segment recorded a fall of 20 percent to 133,524 units compared to the same period in 2019.

The three-wheeler segment remained the worst hit with volumes declining 75 percent during Q2 to 45,902 units as compared to the same quarter in 2019.

The grand total of all vehicle segments during April-September stood at 7.08 million units, a fall of 40 percent compared to 11.73 million units sold in the same period in 2019.

The industry is looking at the festive season, which kicks off on October 17, with a hope to clock better volumes than last year’s festive season. Typically, the festive days generate around 30 percent of the year’s volumes for the automotive industry.
First Published on Oct 16, 2020 11:49 am
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