“Auto Industry Body Reports Two-Wheeler Sales Still Below Pre-COVID Levels”

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The Society of Indian Automobile Manufacturers (SIAM) has reported that while the Indian auto industry showed overall growth in the financial year 2023-24, two-wheeler sales have yet to reach pre-COVID levels, indicating ongoing challenges in the sector.

According to SIAM data, passenger vehicles’ wholesales in India reached a record high of 42,18,746 units in FY23-24, marking an 8.4% year-on-year growth from the previous fiscal year. The utility vehicles, including SUVs, experienced significant growth of 25.8%, totaling 25,20,691 units compared to 20,03,718 units in FY22-23.

However, the two-wheeler segment struggled to fully recover, posting a growth of 13.3% with sales reaching 1,79,74,365 units, still below the peak of 2.1 crore units in FY19. SIAM President Vinod Aggarwal acknowledged the challenges faced by entry-level categories in passenger cars and two-wheelers, attributed partly to the slow recovery of the rural economy.

Aggarwal noted that despite challenges, the Indian auto industry had a satisfactory performance overall, with the domestic industry growing by 12.5% during the fiscal year. Passenger vehicles sales contributed significantly, almost touching 50 lakh units, including 42 lakh units domestically and 7 lakh units in exports.

In the commercial vehicle segment, there was a marginal growth to 97 lakh units. However, light commercial vehicles (LCVs) and small commercial vehicles (SCVs) faced a decline due to challenges in the CNG segment. The migration to higher tonnage trucks also impacted commercial vehicle sales, reflecting higher payload capacity but not necessarily a rise in unit numbers.

The three-wheeler segment showed resilience, nearing the previous peak of 7 lakh units seen in FY19. Overall, while the Indian auto industry demonstrated growth, the continued lag in two-wheeler sales highlights ongoing market challenges and the need for sustained recovery efforts.

Sources By Agencies