Two-wheeler and three-wheeler wholesales registered year-on-year progress in April, because of a low base. However, the passenger car (PV) section remained within the crimson, indicating that the OEMs aren’t out of the woods but so far as chip scarcity is worried.
Two-wheeler and three-wheeler gross sales grew by 15.4% and 51.1%, respectively, whereas PVs de-grew by 3.8% in April, confirmed knowledge launched by Siam on Wednesday.
The April PV wholesale volumes of each Maruti Suzuki and Hyundai Motor India dropped by 10.2%.
Rajesh Menon, director-general at Siam, mentioned: “Sales of passenger vehicles are still below the April 2017 figures, while two-wheelers are below the April 2012 figures. Three-wheelers are yet to reach normal levels as sales are still less than 50% of the April 2016 figures.”
In a analysis word, ICICI Securities mentioned that PV OEMs are progressively ramping up manufacturing with bettering chip provide as quantity rebound continues, with deal with launches of CNG variants and upgrades of fashionable fashions like Tigor, Brezza, Nexon and Baleno.
Arun Agarwal, deputy V-P at Kotak Securities, mentioned: “April 2022 wholesale volumes reported by automobile manufactures saw a mixed performance where some segments were partly impacted by supply side constraints. In the two-wheeler segment, most companies reported growth but that came on a low base. The passenger vehicle segment sales stood impacted by supply chain issues. However, within the passenger vehicle segment, performance varied significantly between players.”
According to Siam, the whole manufacturing of passenger autos, two-wheelers and and three-wheelers in April 2022 was at 1,874,461 models in opposition to 1,875,872 in April 2021, registering a marginal drop.
“Manufacturers are working hard to manage the supplier ecosystem with agility and flexibility as supply side challenges continue for the industry. Further, manufacturers are also monitoring the likely impact on demand due to the recent hike in repo rates, as it would increase the lending costs to the customers,” Menon mentioned.
Kotak Securities mentioned in a word that the auto section quantity efficiency in April was partly impacted by provide aspect constraints and the home PV section additionally continued to be hit. In the home two-wheeler section, business volumes elevated on a y-o-y foundation (partly as a result of a decrease base). However, the reported numbers for the home market got here in under expectations. Even as sure states noticed a pick-up in demand owing to the marriage season, the general demand tendencies proceed to stay muted, it added.
Source: www.financialexpress.com”