Indian automakers saw sluggish sales in May as the global chip shortage issue persisted.
The segment comprising passenger cars, utility vehicles, and vans sold 2.51 lakh units in May, a 0.2% decline over the previous month, according to data released by the Society of Indian Automobile Manufacturers. Sales, however, rose nearly three times over the year earlier on a low base as restrictions to contain the second Covid-19 wave hurt economic activity.
Total two-wheeler sales rose 9.9% over the previous month to 12.53 lakh units in May.
“Sales of two-wheelers and three-wheelers continued to remain sluggish in May, as they are even below of what it was nine years and 14 years ago, respectively,” SIAM Director General Rajesh Menon said in a statement. Sales of passenger vehicles, too, are below 2018 levels, he said.
The recent government interventions, according to Menon, would help in easing supply-side challenges. But he expects the second hike in repo rate by the central bank and increase in third-party insurance rates to present a challenge for customers, impacting demand.
Auto Sales In May 2022, As Per SIAM (MoM)
Car sales rose 9% to 1,12,857 units.
Wholesales of utility vehicles fell 8.6% to 1,16,256 units.
Scooter sales rose 6.2% to 3,98,099 units.
Motorcycle sales rose 11.48% to 8,19,940 units.
Three-wheeler sales rose 36% to 28,542 units.