The Indian automobile industry, as reported by the Society of Indian Automobile Manufacturers (SIAM), experienced a positive uptick in domestic sales during the second quarter of the financial year 2023-24. With a 1.04% growth in total domestic sales, the industry saw a substantial increase to reach 61,16,091 units, compared to 60,52,739 units in the same period during FY23.
Passenger Vehicles Soar to Record Highs
Notably, the passenger vehicle segment achieved an all-time high, with sales reaching 10,74,189 units in Q2 FY24, marking a significant increase from the 1,026,309 units in the corresponding quarter of the previous fiscal year. Within this segment, utility vehicles dominated, making up over 50% of the share with 6,39,552 units. Passenger cars followed closely at 3,96,499 units, along with 38,138 units of vans.
Commercial Vehicles on the Rise
The commercial vehicle segment also displayed impressive growth, with sales reaching 2,47,929 units during Q2 of the current fiscal year, compared to 2,31,880 units in the same period the previous year. This growth was driven by the medium and heavy commercial vehicle (M&HCV) subsegment, with 11,262 units in passenger carriers and 82,534 units in goods carriers. Light commercial vehicles (LCVs) also contributed positively, with 13,142 units in passenger carriers and 1,40,991 units in goods carriers.
Positive Outlook for the Future
Vinod Aggarwal, President of SIAM, noted, “Passenger Vehicles, Three-Wheelers, and Commercial Vehicle segments continued to grow in Q2 of 2023-24. Two-Wheeler wholesale numbers posted a marginal de-growth, compared to Q2 of last year. The retails have been encouraging.”
He added, “As we get into the festival season, all segments of the industry are optimistic and look towards posting good numbers in Q3 as well. This growth in the automobile sectors can be attributed to the all-round economic growth of the country, which is also enabled through the conducive Government policies.”
Rajesh Menon, Director General of SIAM, further highlighted the impressive performance, stating, “Sales of both Passenger Vehicles and Three Wheelers in Q2 of FY2023-24 have been the highest ever in Q2. Passenger Vehicles have posted a growth of 4.7% and Three Wheelers have posted a growth of 62.2%, compared to Q2 of last year. The Passenger Vehicle segment crossed 2 million units in sales for the first time in the first half of the current financial year.”
However, the two-wheeler segment experienced a slight decline of 1.6% in this quarter compared to the previous year, indicating some areas for improvement in the coming months.
