India’s auto sales and production grew in February from the previous year driven by improved demand. Rising price of steel, unavailability of semi-conductors and higher container charges continue to challenge the auto sector.
Production
Production of passenger vehicles, two-wheelers, three-wheelers and quadricycle in February was reported at 2.25mn units, up 15pc compared to the same month the prior year, according to data released by Society of Indian Automobile Manufacturers.
Production from April-February is however down 18.92pc to 24.14mn units from the corresponding period the year before amid the pandemic hit nation. Production and sales started recovering only from September quarter.
Domestic sales
Sales of passenger vehicles in February stood at 281,380 units, up by 17.92pc from the preceding year. Sales of three-wheelers was recorded at 27,331 units in February, down 33.82pc from the prior year. Two-wheeler sales in February stood at 1.42mn units in February, up 10pc from the previous year.
Passenger vehicles sales from April-February was reported at 2.33 units, down 10pc from the previous year. Sales of three-wheelers in April-February was at 184,267 units down 69.77pc from the prior year period. Around 13.62mn units of two-wheeler sales was recorded in April-February, down 17.69pc from the prior year period.
SIAM comments
Rajesh Menon, Director General, SIAM said passenger vehicles sales in April to February period were still below 2015-16 levels and two-Wheeler sales is below 2014-15 levels. Sales of three-wheelers continued to suffer primarily on account of lower off-take of Passenger amid COVID-19. He continued to stress on supply chain challenges which are hampering the sector for almost three-months now, including rising price of steel, unavailability of semi-conductors and higher container charges which continue challenge the auto sector in India.