According to automotive industry association SIAM, auto shipments from factories to dealers in India fell 6% in FY22, with the two-wheeler market posting its weakest wholesale sales ever. last ten years. In fiscal year 2021-22, total wholesale sales across all categories fell to 1,75,13,596 units from 1,86,20,233 units in the prior fiscal year. In the past fiscal year, shipments of two-wheelers fell 11%, but passenger vehicles (PV), utility vehicles and three-wheelers were all up from the 2020-21 low base.
With the exception of 2020-21, three-wheeler shipments in the past fiscal year were the lowest in 19 years, according to data from the Society of Indian Automobile Manufacturers (SIAM). Wholesale commercial vehicle sales in the past fiscal year were also the weakest in five years, with the exception of 2020-2021. SIAM Chairman Kenichi Ayukawa noted that despite some recovery from a weak base, sales of all four auto industry segments were even below the 2018-2019 level. “While some segments like commercial vehicles and SUVs are seeing improved demand, mass segments like two-wheelers and small cars are facing serious affordability issues. Of course, our immediate challenge in the most segments is semiconductor availability,” he said.
Total two-wheeler shipments stood at 1,34,66,412 units last fiscal year compared to 1,51,20,783 units in 2020-21. Total PV wholesale sales, however, increased by 13% to 30,69,499 units from 27,11,457 vehicles in the 2020-21 COVID-hit. Similarly, sales of three-wheelers jumped to 2,60,995 units in the last fiscal year from 2,19,446 units in fiscal year 21. Total commercial vehicle wholesale sales also increased to 7 16,566 units, compared to 5,68,559 units in 2020-2021. SIAM noted that two-wheeler shipments in the past fiscal year were the lowest in 10 years. Similarly, passenger vehicle shipments last fiscal year were below 2017-18 and 2018-19 levels.
He further said that the sharp increase in the prices of raw materials, precious metals and freight rates put additional pressure on the supply chain and profitability of the industry. Ayukawa said the auto industry has remained at the same level as five years ago due to various challenges plaguing it. He noted that the overall economic recovery and some tax breaks on entry-level cars and two-wheelers can help the sector. Reflecting on the fiscal year that just ended, Ayukawa noted that the year was full of unforeseen challenges and new learnings for the industry.
“In the current situation, it is very difficult to predict the future…there is uncertainty due to the Russian-Ukrainian crisis…plus COVID cases are increasing again in India and globally.. .we will continue to focus on the safety of our people, try to maximize production and sales,” he added. The industry would also seek to mitigate supply chain issues and improve the efficiency and productivity, veteran industry leader SIAM chief executive Rajesh Menon said the industry as a whole experienced a 6% decline in FY22.
“The Indian automotive industry has been working hard to meet these challenges to keep the value chain running, indigenize parts, control costs, invest in new technologies and improve exports. The government has also offered targeted support like PLI programs, extension of FAME program, etc. “, did he declare. On the sales growth forecast, Ayukawa said the industry is looking to post growth for this fiscal year, but added that the shortage of chips could negatively impact production volumes.
“All segments face supply-side challenges and the industry has yet to experience a full recovery from the disruptions it has faced since early 2020,” he added. However, last fiscal year’s overall exports jumped to 56,17,246 units from 41,34,047 units in 2020-21. “All four segments of the industry increased their exports. In fact, two-wheelers achieved their highest ever exports. It is good to see that Indian products are becoming more and more acceptable in the world for their quality, cost and performance,” Ayukawa said.
Robust shipments to various developing countries, including African countries, boosted overseas shipments of two-wheelers to 44,43,018 units last fiscal year. In March, India’s domestic wholesale PV sales fell nearly 4% to 2,79,501 units from 2,90,939 units in the same month of 2021. Two-wheeler sales also fell 21% to 11,84 210 units, compared to 14.96,806 vehicles in March 2021. Sales of motorcycles fell by 21% to 7,86,479 units compared to 9,93,996 units in March 2021. Sales of scooters also fell by 21% to 3,60,082 units against 4,58,122 vehicles a year ago.
Summary of news:
- In FY22, car sales remain weak; two-wheeler shipments are at their lowest level in a decade
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