Auto industry witnesses dip in wholesales amid supply issues: SIAM
The Indian auto industry has witnessed a marginal dip in wholesales in the month April. The Society of Indian Automobile Manufacturers (SIAM) came out with its monthly sales reports today which stated that auto manufacturers are still struggling with issues like supplies while a few more have cropped up recently to put further pressure.
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According to SIAM, passenger vehicle dispatches from factories to dealers declined by four percent in April. SIAM said this happened due to supply side challenges in the auto industry. It is also one of the factors why several cars have long waiting periods.
The overall passenger vehicle domestic wholesales stood at 2,51,581 units last month as compared to 2,61,633 units in April 2021. Passenger car dispatches stood at 1,12,857 last month as against 1,41,194 units in the same month last year. Utility vehicle wholesales however increased to 1,27,213 units from 1,08,871 units in the year-ago period. Van dispatches remained flat at 11,511 units in April as against 11,568 units in April 2021.
Sales of two-wheelers have increased during this period by 15 percent to 11,48,696 units as compared to 9,95,115 units in April 2021. Motorcycle sales increased to 7,35,360 units as against 6,67,859 units in April 2021. Similarly, scooter dispatches rose to 3,74,556 units last month as compared to 3,01,279 units in the year-ago period.
Three-wheeler wholesales also increased to 20,938 units last month as against 13,856 units in April 2021.
Rajesh Menon, Director General at SIAM, said, "Sales of passenger vehicles is still below the April 2017 figures, while two-wheelers are even below the April 2012 figures." According to him, the sales of passenger vehicles are still below the April 2017 level, two wheelers are yet to climb up to the April 2012 figures and three-wheelers are yet to reach normal levels, as sales are still less than 50 per cent of April 2016 figures.
Menon also said, "Further, manufacturers are also monitoring the likely impact on demand, due to the recent hike in repo rate, as it would increase the lending rates to the customers." Earlier this month, the Reserve Bank of India had increased the repo rate by 40 basis points to 4.4 per cent in a bid to contain inflationmaruti.