India’s auto industry shows signs of growth as sales rise by over 14 per cent in August

NEW DELHI (XINHUA) – Sales of passenger vehicles rose by 14.16 per cent during August in India, as compared to the same month last year, thereby showing a positive sign of growth in the auto sector, said the latest data released by the Society of Indian Automobile Manufacturers (SIAM).

In all, 215,916 units of passenger vehicles were sold in the previous month, compared to 189,129 units sold in August last year, according to the SIAM data released late on Friday.

Industry insiders said this was a good signal of revival of Indian economy in the aftermath of COVID-19 pandemic and the prior overall economic slowdown.

Normally, October-November are the festive months in India when most people indulge in buying, particularly vehicles. The growth in sales of vehicles during August is also seen as a big boost ahead of the festive season.

The SIAM data also revealed that the total production of passenger vehicles, including three-wheelers, two-wheelers and Quadricycle in August was 2,162,367 units, as against 2,231,355 units in August 2019 with a decrease of 3.09 per cent.

A total of 14,534 three-wheelers were sold in August, compared to 58,818 units sold in August 2019, marking a decrease of 75.29 per cent.

However, two-wheeler sales were 1,559,665 units in August, compared to 1,514,196 units in August 2019, showing a growth of three per cent.

Meanwhile, owing to the lockdown imposed with effect from March 25, the overall sales in the current financial year (April-August) has been dismal as compared to the same months last year.

According to the SIAM data, a total of 552,429 passenger vehicles were sold in April-August, compared to 1,091,928 units sold in April-August 2019, showing a degrowth of 49.41 per cent.