Auto

Passenger vehicle sales rise 26% in September 2020 but industry still cautious, here’s why

According to information launched by Society of Indian Automobile Manufacturers (Siam) on Friday, passenger vehicle sales throughout September stood at 271,027 items, up 26.45% in contrast with the identical month final 12 months. Two-wheeler sales additionally rose 11.64% in the course of the month on a year-on-year foundation.

 

Passenger vehicle (PV) sales noticed a robust double-digit progress in September as producers pushed extra automobiles to the sellers who’ve depleted their shares after the lockdown on the again of pent-up demand. Dealers have been stocking since August in anticipation that the upcoming competition season would see good demand for automobiles. According to information launched by Society of Indian Automobile Manufacturers (Siam) on Friday, passenger vehicle sales throughout September stood at 271,027 items, up 26.45% in contrast with the identical month final 12 months. Two-wheeler sales additionally rose 11.64% in the course of the month on a year-on-year foundation. However, industrial vehicle sales continued to do badly, registering a decline of 20.13%. Despite the upswing in sales of PVs and two-wheelers (despatches from factories to sellers) since August, producers are maintaining their fingers crossed about sales forecast.



There are two causes for this. One, the elevated sales are on low base and second, volumes in most segments are still under what was seen some 5 years in the past. “Though we are seeing some green shoots, the volumes in most segments are still lower than those seen five years ago. We are expecting strong demand for passenger vehicles and two-wheelers in the festive season. Beyond that it is difficult to predict how demand will shape up. We have to wait and see,” Siam president and MD of Maruti Suzuki India, Kenichi Ayukawa stated.

Siam director-general Rajesh Menon stated if the numbers in the final 5 years are in contrast, it exhibits industry volumes have gone under the 2016 stage. “In terms of volumes, if you look at quarterly and half-yearly comparisons and also to some extent monthly comparison, we have gone below 2016 in most of the segments,” he stated. On its half, the auto industry can also be cautious to not gas any hypothesis a few minimize in GST charges at this level as it could have an effect on sales in the course of the competition season with customers suspending their buy selections. Though Siam has in the previous raised the demand for decreasing GST charges on auto merchandise, particularly two-wheelers, it isn’t elevating it at this level of time.

When requested concerning the the demand for GST rate cuts and whether or not the industry physique has been in a position to persuade the federal government on it, Ayukawa stated that the industry’s precedence proper now could be to combat coronavirus and improve manufacturing and sales to cater to the festive season demand, whereas different essential issues like discount in GST rate might be taken up at a later stage. “Right now, nationally and globally everybody is fighting the coronavirus. We will have to collaborate and integrate our effort to fight this pandemic. It is the priority right now,” Ayukawa stated.

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