Passenger vehicle dispatches in fast lane; record best-ever February performance: SIAM

PTI – Earlier this month, the Federation of Automobile Dealers Associations also said passenger vehicle sales grew 11% in February. FADA expects sales to rise in March on pre-buying ahead of a regulatory change that would increase prices from April and as automakers dish out promotional offers in the final month of India’s fiscal year.

Indian automakers dispatched nearly 2.92 lakh passenger vehicles, the highest ever for February so far, driven by strong demand for cars and utility vehicles, industry body SIAM said on Friday. The total passenger vehicle dispatches from companies to dealers last month increased 11 per cent to 2,91,928 units from 2,62,984 units in February 2022.

Passenger car sales rose to 1,42,201 units in February against 1,33,572 units in the year-ago period. Similarly, utility vehicle dispatches, including sports utility vehicles, rose to 1,38,238 units compared to 1,20,122 units in February 2022.

Dispatches of vans rose to 11,489 units last month from 9,290 units in February 2022.

Maruti Suzuki India dispatched 1,02,565 units last month to dealers, an increase of 3 per cent from 99,398 units a year ago. Hyundai Motor India sold 24,493 units last month compared to 21,501 units in February 2022.

The total two-wheeler wholesale dispatches rose 8 percent to 11,29,661 units against 10,50,079 units in February last year.

Motorcycle dispatches increased to 7,03,261 units last month from 6,58,009 units in February 2022. Similarly, scooter dispatches rose to 3,91,054 units from 3,56,222 units in the year-ago period.

Three-wheeler sales surged 86 per cent to 50,382 units last month from 27,074 units in February 2022.

Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said it was the highest-ever sales of passenger vehicles in February.

“In the period April-February, two and three-wheelers are yet to reach the pre-COVID levels, though it is the highest-ever for the passenger vehicles,” he noted.

SIAM President Vinod Aggarwal said the overall positive sentiment in the market continues, which is also driven by encouraging announcements in the Union Budget for consumers.

He noted that the domestic auto industry is fully geared up for the transition to Phase 2 of BS-VI emission norms for all categories of vehicles from the next month.

“Hike in repo rates in February, which would result in higher cost of borrowings, remains a concern, and we hope that the rates would get moderated suitably,” Aggarwal said.

Moderation of CNG fuel prices is also important for expanding the footprint of gas-based mobility, which is critical for sustainable mobility, he added.

The total dispatches of passenger vehicles, two and three- wheelers rose to 1,84,68,278 units in February compared to 1,52,66,617 units in the same month last year.