Passenger Vehicle Wholesales Reach New Record in May with 334,247 Units: SIAM

Domestic Passenger Vehicle Wholesales Reach All-Time High in May

According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM), May 2023 witnessed a significant milestone for the Indian automobile industry. Domestic passenger vehicle wholesales soared to a record-breaking figure of 334,247 units, marking a substantial growth of 13.54% compared to the corresponding period in the previous year. This surge in sales was primarily propelled by the remarkable performance of utility vehicles.

Robust Growth in Utility Vehicle Sales Drives Overall Passenger Vehicle Wholesales

The exceptional growth in domestic passenger vehicle wholesales during May can be attributed to the robust performance of utility vehicles. Excluding Tata Motors, which reports its numbers quarterly, utility vehicle wholesales surged by an impressive 33.5% last month, reaching 155,184 units. In comparison, the figure stood at 116,255 units during the same period last year. This surge in utility vehicle sales demonstrates the increasing preference of Indian consumers for these versatile and spacious vehicles.

Two-Wheeler Segment Registers Solid Growth in May

The two-wheeler segment also experienced a notable surge in sales during May. Domestic two-wheeler wholesales reached an impressive figure of 1,471,550 units, showcasing a growth rate of 17.42% compared to May of the previous year when 1,253,187 units were sold.

Within this segment, motorcycle sales witnessed a substantial increase of 20.63%, with 989,120 units sold in May 2023, as opposed to 819,940 units in May 2022. Additionally, scooter sales rose by 12.18% to reach 446,593 units, compared to 398,099 units in the same month last year.

Three-Wheeler Wholesales Show Strong Performance

The three-wheeler segment demonstrated a remarkable improvement in wholesales during May. Total sales of three-wheelers surged to 48,732 units, indicating a significant growth rate of 70.4% compared to May 2022, when 28,595 units were sold. Although this growth is calculated based on a low base, it is important to note that the current figures remain slightly below the levels witnessed in 2018-19.

Positive Outlook for the Indian Automobile Industry

SIAM President Vinod Aggarwal expressed optimism regarding the growth trajectory of the Indian automobile industry. He stated that all segments, including passenger vehicles, two-wheelers, and three-wheelers, witnessed double-digit growth in May 2023 compared to the same period last year. Aggarwal expects this positive trend to continue, supported by the prevailing economic environment.

However, Rajesh Menon, Director General of SIAM, noted that two-wheeler sales in May 2023 were still lower than the levels observed in 2016-17, and three-wheeler sales remained below the levels of 2018-19, despite significant growth on a low base.

Conclusion

The Indian automobile industry witnessed impressive growth in May 2023, with passenger vehicle wholesales reaching a new record high. The robust performance of utility vehicles, coupled with significant increases in two-wheeler and three-wheeler sales, indicates a positive trajectory for the industry. This growth reflects the evolving preferences and increasing demand from Indian consumers for various vehicle segments.