Pandemic pushes India's passenger vehicle sales to six-year low
The Indian auto sector was already facing a “deep structural slowdown” even before the pandemic and together this has pushed back sales by many years, Kenichi Ayukawa, president of the Society of Indian Automobile Manufacturers (SIAM), said. “Recovery from here will require time and efforts, by all stakeholders,” said Ayukawa, who is also managing director of
, India’s biggest carmaker by sales.
Passenger vehicle sales fell 2.24% in the fiscal year ended March 31, 2021, to 2.71 million, with automakers such as Ford Motor and Volkswagen reporting, falls of over 20% compared with an 8.5% drop for domestic rival Maruti, which sells one in every two cars in India, data from SIAM showed.
That was offset by higher sales from new entrants such as Kia Motors and SAIC Motor’s British brand MG Motors, as well as local rival Tata Motors. Sales of trucks, a barometer of economic activity, tumbled 21% to an 11-year low, while motorcycle and scooter sales fell 13% to their lowest level in seven years, the data showed.
The auto industry is working to maximise production and sales, but supply chain disruptions and the second wave of infections is making it hard to predict the future, Ayukawa said. In some states like Maharashtra, home to the financial capital Mumbai and one of India’s largest auto manufacturing hubs, the government has already imposed limitations like a night curfew to curb the virus’ spread.
