the roof of a building: SIAM reports growth in wholesale auto sales in Aug; warns of high base effect, pent-up demand

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SIAM reports growth in wholesale auto sales in Aug; warns of high base effect, pent-up demand

Passenger vehicle and two-wheeler sales showed improvement in the month of August, data released by the Society of Indian Automobile Manufacturers (SIAM) indicated.

While passenger vehicle sales stood at 2,15,916 units in August 2020, a 14.16 percent growth YoY, two-wheeler sales were up a marginal 3 percent at 15,59,665 units. Wholesales in the three-wheeler category fell sharply by 75.29 percent.

However, wholesale figures across segments showed a steep double-digit decline in the April-Aug period. SIAM no longer posts monthly commercial vehicle sales data.

Despite the positive wholesales numbers, the auto industry is nowhere close to its peak-2018 levels.

“Even though the industry witnessed year-on-year growth in August 2020, it

is to be recognized that the base figures in August 2019 itself was very low, as Industry had shown a de-growth of about (-) 32% for Passenger Vehicles and (-) 22% for 2 Wheelers in 2019, over 2018, then,” Kenichi Ayukawa, President, SIAM, cautioned.

He added that demand in the month of August indicates a “trend of recovery, though it is on the backdrop of pent-up demand and beginning of a Festive Season this month.”

Production volumes for the industry were negative at 22,31,355 units in August, a contraction of 3.09 percent vis-a-vis August last year. This is exclusive of commercial vehicle numbers, which SIAM has decided to release only on a quarterly basis.

Vehicle registration data released by FADA for August, however, shows a divergence from the wholesale figures and declined 26.81 percent on a year-on-year basis. There was, however, a month-on-month improvement on the back of better supply and festive-season purchases.

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