Car sales declined by 7% in December

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Domestic passenger car wholesale sales (dispatches to dealers) in December fell 7 percent year-on-year (YoY) at 1,04,601 units, compared to 1,12,873 units in the same month a year earlier, according to the latest Monthly data released by the Association of Indian Motor Manufacturers (SIAM).

However, the multi-purpose vehicle (UV) segment, which is growing, grew by 23 percent year-on-year at 1,20,015 units, compared to 97,137 units in the corresponding month of the previous year.

Growth in the UV segment pushed total passenger vehicle (PV) sales up 7 percent year-on-year to 2,35,309 units during the month, compared to 2,19,421 units in December 2021.

Total sales of three-wheelers also grew by 37 percent year-on-year to 28,184 units last month, compared to 38,693 units in the corresponding month of 2021.

Total two-wheeler sales grew three percent year-over-year to 10,45,052 during the month, compared to 10,15,942 units in December of the previous year. While scooter sales grew 15 percent, motorcycle sales declined slightly.

The combined total for all categories grew four percent year-on-year during the month at 13,19,074 units, compared to 12,63,557 units in December 2021.

“The festive season has helped bring back healthy sales figures for all segments. However, demand continues to be weak in rural areas, as rising food inflation and increasing cost of finance are affecting the rural market,” said Rajesh Menon, Managing Director, SIAM.

On a calendar year (CY) basis, total PV sales grew 23 percent year-over-year, 37,92,356 units, compared to 30,82,421 units in FY21. Likewise, total two-wheeler sales grew by more than seven percent to reach to 1,56,07,991 units in the last calendar year, compared to 1,45,33,815 units in January-December 2021.

Total commercial vehicles also grew by 38% to 9,33,116 units last year compared to 6,77,116 units in 2021.

“Passenger vehicles recorded an all-time high of 3.8 lakh units, which is over four thousand units higher than the recent peak in 2018. Commercial vehicles reported sales of 9.3 lakh units, which is around 72,000 units lower than the previous peak in 2018. No Sales of three-wheelers are still lower than those of 2010 and sales of two-wheelers are lower than those of 2014,” said Vinod Aggarwal, President, SIAM.