New Delhi, June 11 (SocialNews.XYZ) Covid-induced economic volatility contracted the demand for domestic passenger vehicles in May 2021 from May 2019 levels.
However, the base effect, along with low interest rates and some pent up demand, showed an accelerated rise in domestic demand in May 2021 on a year-on-year basis.
Sales of passenger vehicles increased to 88,045 in May this year compared to 33,546 units sold during the same period of 2020. The May 2021 figures were, however, lower by 61.2 per cent from 2,26,975 units sold during May 2019.
The category includes sub-segments of cars, utility vehicles and vans.
A total of 41,536 passenger cars were sold in the domestic market, up from 14,460 units in the corresponding period of 2020.
The sub-category had an off-take of 1,43,449 units.
The Society of Indian Automobile Manufacturers (SIAM) said the data does not include sales figures from some key players such as Tata Motors.
Besides, sales of two-wheelers increased to 3,52,717 in May 2021 as compared to 2,79,682 units sold during the same period of 2020.
Nevertheless, the May 2021 figures were lower by 79.6 per cent from 17,25,204 units sold during May 2019.
The overall automobile sectors' off-take representing the sales of passenger vehicles, two-wheelers and three-wheelers rose to 4,42,013 units from 3,15,638 units sold during the same period of 2020, while the May 2021 figures were 20,04,137 units.
"Most part of May this year was under lockdown in many states thus impacting overall sales and production," SIAM Director General Rajesh Menon said.
"Many members had shut down their manufacturing plants to divert oxygen from industrial use for medical purposes."
ICRA's Vice President & Sector Head, Corporate Ratings, Ashish Modani said: "In line with expectations, Covid 2.0 induced lockdown restrictions across key states has resulted in sharp decline in wholesale despatches during May 2021."
"While the lockdown situation is easing, the ramp up in volume is likely to be gradual, unlike the fast paced V shaped recovery witnessed during last fiscal."
Source: IANS
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