Passenger vehicles recorded highest-ever sales this January says SIAM

• Two-wheeler sales in January 2023 grew at a modest pace of 3.8% year-on-year, said SIAM.
  
  
• Better consumer sentiment is driving demand for passenger vehicles, the industry body said.
  
  
• Three-wheeler sales gained traction in the last two years, but are yet to reach pre-Covid levels.
  

In January 2023, total passenger vehicle sales grew 17.3% to 2.98 lakh units compared with 2.54 lakh units in the same month last year. The sales of two-wheelers, however, grew at a modest pace of 3.8% to 11.8 lakh according to industry body, Society of Indian Automobile Manufacturers (SIAM).

“Passenger vehicles again saw highest-ever sales in the month of January and for the first time, it has crossed 3 million sales mark in 10 months, from April to January period,” said Rajesh Menon, director general of SIAM.

Three-wheeler segment gained traction compared to the last two years, though sales are yet to reach pre-Covid levels. This segment's sales doubled in January with robust growth across sub-segments like passenger and goods carriers and e-rickshaws according to SIAM data.

The total auto sales for the month of January 2023 stood at 15.3 lakh units, compared to 14.2 lakh units, said SIAM in a press note.

“Better consumer sentiment is driving demand for passenger vehicles. The rate of growth of two-wheelers in the recent year has not kept pace with the growth in the other segments. Positive announcements at the Union Budget should help in continuing with the overall growth momentum,” said Vinod Aggarwal, president, SIAM.

January 2023 domestic auto sales

Source: SIAM

Consumer sentiment improving at snail’s pace: FADA
In its January sales report released last week, Federation of Automobile Dealers Associations (FADA) said that auto sales are yet to hit pre-pandemic levels. As compared to January 2020, auto sales in January 2023 were down by 8%, the industry body had said.

“While sentiments are improving at a snail’s pace and are better than what it was a year ago, rural market is yet to fully come to the party as cost of ownership has shot up significantly while disposable income has not increased in the same ratio,” said Manish Raj Singhania, president of FADA.

The Economic Survey 2022-23 said that rural wages will rise at a steady positive rate as inflation is expected to soften, thus translating into a rise in real wages. “We are hopeful that this will have its rub-off effect with a rise in 2-wheeler sales going ahead,” FADA says in its outlook.

The PV segment, however, grew 8% from its pre-Covid levels in January 2023 as compared to January 2020, said FADA. “While good enquiry, healthy bookings and improved supplies are helping aid this segment, it is the entry level sub-segment which is still feeling the pinch,” said Singhania.

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