Record-Breaking Passenger Vehicle Sales in June Quarter: SIAM

Passenger vehicle wholesales surpassed the 10-lakh mark for the first time in the June quarter, driven by strong demand for utility vehicles, as per SIAM. Total dispatches increased to 10,26,006 units, up 3% from the previous year, with utility vehicle sales rising by 18%.

Passenger vehicle wholesales crossed the 10-lakh mark for the first time ever in the June quarter, driven by strong demand for utility vehicles, industry body SIAM reported on Friday.

Total dispatches of passenger vehicles in the first quarter stood at 10,26,006 units, representing a 3 per cent increase compared to 9,96,565 units in April-June FY24.

Utility vehicle sales surged 18 per cent to 6,45,794 units in the first quarter from 5,47,194 units in the year-ago period. Vans saw a 9 per cent rise, with dispatches reaching 38,919 units compared to 35,648 units previously.

Conversely, passenger car sales declined by 17 per cent to 3,41,293 units from 4,13,723 units in the June quarter of the previous year.

"Utility vehicles accounted for 63 per cent of the overall passenger vehicle sales in the first quarter, with a noticeable shift from sedans to utility vehicles," according to SIAM President Vinod Aggarwal.

The first quarter noted the highest ever passenger vehicle sales, surpassing the 10-lakh mark, SIAM Director General Rajesh Menon confirmed.

Two-wheeler dispatches climbed to 49,85,631 units, marking a 20 per cent increase from 41,40,964 units in the same quarter last year. Aggarwal pointed out higher growth in scooters due to recovery signs in entry-level two-wheelers.

Three-wheeler wholesales also rose by 14 per cent to 1,65,081 units, up from 1,44,530 units during the same period in the last fiscal year.

Commercial vehicle dispatches increased 3.5 per cent year-on-year to 2,24,209 units in the first quarter. Overall, dispatches across categories surged 16 per cent to 64,01,006 units from 54,98,752 units in the year-ago period.

Aggarwal stated that, with a positive outlook on the monsoon and upcoming festive season, the automotive sector is expected to perform better for the rest of the year.

Regarding dealer concerns over inventory management, Aggarwal noted that fluctuations are normal and not a significant issue, ensuring corrective actions where necessary.

Regarding the Uttar Pradesh government's full waiver of registration fees on hybrid vehicles and its effect on EV sales, he acknowledged mixed views among OEMs and refrained from commenting.

June saw domestic passenger vehicle wholesales rise 3 per cent year-on-year to 3,37,757 units. Overall passenger vehicle dispatches to dealers stood at 3,27,788 units in June 2023. Two-wheeler wholesales saw a 21 per cent increase to 16,14,154 units, while three-wheeler wholesales rose 12 per cent to 59,544 units from the previous year.