June qtr PV sales overtake Q1FY19 volumes, two-wheeler sales lag

Entry-level cars, two-wheelers remain in slow lane; two-wheeler exports jump

Passenger vehicle (PV) sales in the domestic market for the June quarter rose to the highest in four years amid easing semiconductor shortage and robust demand, the Society of Indian Automobile Manufacturers said on Wednesday. 

This was the first time that the quarterly volumes surpassed peak volumes seen in 2018-19 (FY19). 

Strong growth in utility vehicles (UVs) led the overall momentum. UVs accounted for a little more than half the PV volumes in the first quarter (Q1), against 27 per cent in Q1FY19. 

While the automotive industry can draw some comfort from PV sales surpassing the peak, indicating strong growth trajectory for the segment, it cannot take its eyes off the red flags.

Sales of entry-level models in two-wheelers and cars have plunged year-on-year, underscoring the distress at the bottom of the pyramid.

A 59 per cent drop in the mini car segment and 36 per cent and 42 per cent fall in scooter and motorcycles, respectively, indicate buyers are feeling the head-on impact of persistent high inflation and deferring new vehicle purchase decisions.

A bright spot for two-wheeler makers during the June quarter was record shipment in overseas markets. Led by Bajaj Auto, TVS Motor and others, exports zipped past the 859,000 unit-mark of FY19 and reached 1,149,000 units in Q1 of 2022-23.