Two-wheeler sales were subdued due to higher inflation and rising interest rates: SIAM
Two-wheeler sales were subdued due to higher inflation and rising interest rates: SIAM
Domestic wholesales of passenger vehicles increased 29% in October driven by strong demand in the festival season. However, sales of two-wheelers were subdued due to higher inflation and rising interest rates, the Society of Indian Automobile Manufacturers (SIAM) said on Friday.
Total passenger vehicle dispatches from companies to dealers rose to 2,91,113 units last month from 2,26,353 units in the year-earlier period, data from SIAM showed. Two-wheeler wholesales grew 2% to 15,77,694 units.
“Good market sentiment coupled with festive boost resulted in higher sales in October, especially for passenger vehicles,” SIAM president Vinod Aggarwal said in a statement, adding that higher inflation and rising interest rates had impacted the rural market more, thereby impacting the growth of the two-wheeler segment.
Mr. Aggarwal said passenger three-wheelers were witnessing better offtake due to increased shared mobility in semi-urban and urban areas. Three-wheeler wholesales last month rose to 54,154 units from 31,812 units in the year-earlier period.
SIAM director general Rajesh Menon added that though passenger vehicles reported the highest-ever domestic sales in April-October 2022, sales of two-wheelers in these seven months were still lower than that seen in 2016.
“For three-wheelers it is lower than 2010. Similarly, exports of passenger vehicles continued to grow, while there has been a drop in exports of both two and three-wheelers,” he added.
Total vehicles sales last month stood at 19,23,032 units, up 6% October 2021. Total vehicle production was down 1.5% during the month to 2,191,090 units. As per SIAM data, while production of passenger vehicles was up 28.6% to 3,30,989 units from 2,57,179 units, that of two wheelers fell 6.4% to 1,773,857 units.
