India records highest-ever passenger vehicle sales in Q2
India's passenger vehicle wholesales hit their highest level in any quarter so far in the second quarter of 2023, reported the Society of Indian Automobile Manufacturers (SIAM). Passenger vehicle dispatches from companies to dealers rose by 4.7% to 10,74,189 units in Q2 2023 compared to 10,26,309 units during the same period last year. This also marks the first time domestic passenger vehicle wholesales exceeded the 20 lakh mark in the first half of any fiscal year.
Utility vehicles fuel growth, entry-level cars dip
SIAM President Vinod Aggarwal credits the growth in passenger vehicle sales to the strong demand for utility and sports utility vehicles, which now make up around 60% of overall sales. However, entry-level car wholesales saw a decline, dropping to 35,000 units in Q2FY24 compared to a peak of 1.38 lakh cars in Q2FY19. A similar trend was observed in the entry-level two-wheeler segment, with rural demand yet to fully bounce back.
Two-wheeler sales decline, commercial vehicles rise
In Q2FY24, passenger vehicles, three-wheelers, and commercial vehicle segments experienced growth, while two-wheeler wholesale numbers posted a slight decrease compared to Q2FY23. Total two-wheeler dispatches dipped to 45,98,442 units in Q2FY24 from 46,73,931 units in the year-ago period. On the other hand, commercial vehicle dispatches climbed to 2,47,929 units from 2,31,991 units in the year-ago period. Total three-wheeler wholesales skyrocketed to a record 1,95,215 units in Q2 compared with 1,20,319 units in the same period last fiscal.
Optimism for Q3 amid festival season
As the festive season nears, all segments of the automobile industry are hopeful about posting strong numbers in Q3, according to Aggarwal. He attributes the growth in the automobile sector to India's all-round economic growth and supportive government policies. In September 2023, passenger vehicle dispatches increased by 2% year-on-year to 3,61,717 units, while two-wheeler sales rose to 17,49,794 units and total three-wheeler wholesales increased to 74,418 units.
