Auto industry witnesses handsome show in May, major segments post double-digit growth

By India Today Auto DeskThe automobile industry witnessed a handsome show in May as passenger vehicle (PV), two-wheeler and three-wheeler segments recorded double-digit growth in the domestic market during the month owing to robust demand and availability of more vehicles following an improvement in semiconductor supply.

The strong run of the PV segment, bolstered by a growing demand for sport utility vehicles (SUVs), continued as the volumes jumped 13.54% year-on-year (y-o-y) at 334,247 units in May, according to the latest data shared by the industry body Society of Indian Automobile Manufacturers (SIAM).

During the month, SUVs contributed a staggering 47% to the PV sales with the best-selling models being the Hyundai Creta, Tata Nexon, Maruti Suzuki Brezza, Tata Punch and Hyundai Venue.

The two-wheeler segment seems to be finally back on track as the volumes improved 17.43% y-o-y at 1,471,550 units. The sales were positively impacted by seasonal factors like the marriage season, as well as the recovery of rural demand.

The three-wheeler segment also recorded a jump of 70.42% y-o-y in domestic wholesale despatches at 48,732 units. As many as 35 units of quadricycles were sold in May.

“All the segments viz. passenger vehicles, two-wheelers and three-wheelers have posted growth in double digits in May 2023, compared to May 2022. We anticipate this trend to continue supported by the prevalent economic environment,” Vinod Aggarwal, President, SIAM.

“The Indian automobile industry is currently in a transition phase with new powertrain technologies offered to consumers ranging from electrified, bio-fuels and gaseous fuel driven vehicles which are being enabled through sound policies of the government,” he added.

Source – SIAM