SIAM: Domestic Passenger Vehicle Sales Grow 185% in May 2022

The Society of Indian Automobile Manufacturers released the sales number for the month of May 2022. The apex industry body reported a strong sales growth over the pandemic hit May 2021 and May 2020 across both passenger vehicle and two-wheeler segments though it was quick to point out that numbers were still below pre-pandemic highs. Passenger vehicle sales grew a notable 185 per cent year on year with passenger cars outselling utility vehicles in the month. Overall numbers were up compared to pre-pandemic May 2019 as well though passenger car sales were down 13.5 per cent while utility vehicle sales grew by 64.4 per cent in the same period.

Passenger car sales grew from 41,536 units in May 2021 to 1,24,060 units in the domestic market, an almost 200 per cent gain, though numbers were still down when compared to 1,43,449 units sold in May 2019. Demand for utility vehicles meanwhile posted a growth even compared to pre-pandemic 2019 with 1,16,256 units sold in the domestic market as against 70,715 units in the same month in 2019.

Domestic sales across segments for May over last 4 years.

Photo Credit: SIAM

Moving to two-wheelers, sales saw a notable 253.2 per cent jump as compared to the pandemic hit 2021 though compared to pre-pandemic 2019 numbers were still down by 27.36 per cent.

Also read: FADA: Auto Sales Grow 207% In May 2022 Though Still Down From Pre-Covid Times

Commenting on the May-2022 performance, Rajesh Menon, Director General, SIAM said, “Sales of Two-Wheelers and Three-Wheelers continue to remain sluggish in the month of May 2022, as they are even below of what it was 9 years and 14 years ago, respectively. Sales of Passenger Vehicle segment are also still below 2018 level. Recent Government interventions would help in easing of the supply-side challenges, but second hike in repo-rates by RBI and increase in 3rd Party Insurance Rates, could become more challenging for the customers, thereby impacting demand.”

Three-wheelers too witnessed a notable growth in May 2022 ending the month at 28,542 units sold in the domestic market. This was though on a low base of just 1,262 units sold in May 2021. Pre-pandemic, sales in the segment had been at 51,650 units in May 2019.

Overall exports for the month shrunk by a rather flat 0.75 per cent with three-wheeler and two-wheeler exports posting lower number than May 2021.