Besides, passenger vehicles and three-wheelers recorded record sales in Q3, while two-wheeler volumes rose 22.6%. Commercial vehicle sales also inched up 3.5% in the quarter, over the year-ago period.

The high growth seen in the two-wheelers in Q3 also points to improving sentiments in the rural economy, Vinod Aggarwal, president, SIAM, said.

“If you look at Q3 numbers, they are far better compared to the nine-month period (April- December), especially in case of two-wheelers, wherein sales are largely impacted by rural economy. Nine month growth is 10% but Q3 growth is 23%, so the rural economy is definitely doing better now,” he added.

In 2023, 170 million two-wheelers, including scooters and motorcycles, were sold in India, up 13% over 2022, but is still 21% lower than the peak levels seen in 2018 at 21.6 million units. PV sales were at 4.1 million units in the 12 months to December, and commercial vehicle sales were at 978,000 units, lower by over one million units compared to 2018, the data showed.

In December, utility vehicles (UVs) accounted for 62% of PV volumes, the highest level on record, while sales of passenger cars continued to decline, accounting for 33.9% of the segment.

The slowdown observed in light commercial vehicle sales (LCVs) and moderating CNG (compressed natural gas)-run vehicle sale is responsible for the slightly moderate growth in commercial vehicles in 2023, Aggarwal said. But, robust replacement demand for BS-VI, phase-II compliant trucks, especially in medium and heavy duty (M&HCV) segments, and sustained investments in India’s infrastructure suggests sustainable demand for trucks and buses in fourth quarter.

“Because the upcoming budget is only an interim vote-on-account , as industry body we aren’t putting many asks, but we hope the government continues its capex programme.”

In 2023, EVs accounted for less than 2% of passenger vehicle sales, and about 5% of two-wheeler sale but Aggarwal said a substantial drop in EV battery prices will fuel “slow and steady” adoption of EVs in the country.

Shipments to overseas markets declined across automotive segments in 2023, barring PVs, which showed a marginal increase. “Except passenger cars, exports in all automotive sectors are down. In fact, if you look at he two wheeler exports, sales are down 15%, and even more so for three-wheelers. That’s the situation in export markets overall, however, they should start improving now because Bangladesh elections are over. Let’s hope its economy starts doing better. Then multiple other countries are facing diverse issues, but eventually they will be overcome as economies can’t remain subdued. Thus, future is going to be better than the current scenario in exports,” he added.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 12 Jan 2024, 11:41 PM IST