Passenger vehicle sales in India surged to a new high for February, marking the fourteenth consecutive month of robust monthly sales, according to data from the Society of Indian Automobile Manufacturers (SIAM). The strong performance was attributed to improved supplies and robust consumer demand. Two-wheeler sales witnessed a remarkable 35% year-on-year increase, although they fell short of the record set in the pre-Covid February of 2020, which was a leap year.
Vinod Aggarwal, president of SIAM, credited the overall robust GDP growth in the country's third quarter of FY24 for driving growth in the auto sector. He expressed optimism about the growth momentum continuing in the industry.
SIAM data revealed that 370,786 cars, sedans, and utility vehicles were sold in the country last month, representing a 10.8% increase compared to February 2023. This marked the third-highest monthly sales on record.
Meanwhile, two-wheeler manufacturers sold 1,520,761 units last month, up from 1,129,661 units in February 2023, driven by a resurgence in demand, especially in rural markets. Three-wheeler sales also saw an 8.3% year-on-year increase to 54,584 units in February. However, sales of commercial vehicles experienced a dip last month due to the cyclical nature of demand, as noted by Aggarwal.
Indian automakers typically report wholesale dispatches from factories to dealerships rather than retail sales to customers. Despite global uncertainties, carmakers anticipate the demand momentum to persist in the local market. According to Tarun Garg, chief operating officer of Hyundai Motor India (HMIL), the Indian market remains resilient and is expected to grow in low single digits this year. Maruti Suzuki's senior executive officer, Shashank Srivastava, highlighted the sustained strong demand for SUVs, which now constitute over half of all passenger vehicles sold in the country.
The faster pace of wholesale growth in the two-wheeler segment was attributed to the low base effect by Himanshu K Singh, a research analyst at Prabhudas Lilladher.
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