June 3, 2022
The estimates for the current month of May were 295,000 passenger vehicles as compared to 103,000 units that got dispatched in May 2021.
The demand for passenger vehicles is strong despite the global semiconductor shortage.
Indian automakers have also reported wholesale dispatches from factories to dealerships.
Tata Motors and Mahindra & Mahindra witnessed increased sales over the past month.
The passenger vehicle industry saw the sales triple as compared to last month, albeit at a low base due to disruptions caused by the second wave of the pandemic.
The estimates for the current month of May were 295,000 passenger vehicles as compared to 103,000 units that got dispatched in May 2021. Indian automakers have also reported wholesale dispatches from factories to dealerships, not retail sales to customers.
Although the demand for passenger vehicles is strong, the production continues to be limited due to the global semiconductor shortage thus affecting the availability of the vehicles in the market. With banks increasing their interest rates, it could hamper the market growth further.
Although the sales of major firms such as Maruti Suzuki and Hyundai Motors got affected severely in May, Tata Motors and Mahindra & Mahindra witnessed an increased sales of passenger vehicles in the past month, especially in the electric vehicles and sports utility vehicle (SUV) segments.