semiconductor: Passenger vehicle dispatches rise 11% in July as semiconductor supply improves
Compared to July 2021, when there were 2,64,442 passenger vehicle wholesales, the wholesales were 2,93,865 last month. From 1,30,080 units in the same month last year, passenger car dispatches increased 10% to 1,43,522 units in July.
Wholesales of utility vehicles increased 11% last month, from 1,24,057 units in the same time the previous year to 1,37,104 units. Additionally, van dispatches climbed from 10,305 to 13,239 units in July 2021. From 12,60,140 units, the total number of two-wheeler dispatches increased by 10% to 13,81,303 units. Wholesales of scooter increased to 4,79,159 units from 3,73,695 units.
Similar to this, wholesales of motorcycles grew in July from 8,37,166 units to 8,70,028 units. A year ago, 18,132 three-wheelers were dispatched to dealers; this year, 31,324 three-wheelers were dispatched to dealers.
Rajesh Menon, the director general of the Society of Indian Automobile Manufacturers (SIAM), highlighted that the market for entry-level passenger cars, two-wheelers, and three-wheelers has not yet begun to revive.
“Sales of two-wheelers in July 2022 are still below July 2016 numbers and sales of three-wheelers are still below the July 2006 numbers. The third hike in a repo rate in a row, to rein in high inflation, will make auto loans costlier, making it more difficult for entry-level vehicles to recover,” he added.
Menon added that the improvement in supply chain is what is to blame for the month’s increase in passenger car dispatches.
He applauded the government’s recent choice to provide more domestic gas to the CNG market.
“This would significantly bring down the input cost of gas companies. We hope that in line with the Government’s intent, the gas companies would pass on the entire benefit to the end consumers by reducing retail CNG prices,” he noted.
