InvestorQ : How were the passenger car numbers for the month of January 2021? Did the festive sales really make a substantial difference?
Priyanka N made post

How were the passenger car numbers for the month of January 2021? Did the festive sales really make a substantial difference?

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Neelam Naik answered.
4 weeks ago
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The Dec-20 quarter has been a strong month for the auto sector and that was visible in the numbers of November and December. That lag effect appears to have transmitted to the month of January too and the demand has been quite robust across the passenger and the two wheeler categories.

In fact, the passenger vehicle sales the month of Jan-21 were up nearly 11% at 276,000 units as per data put out by the Society of Indian Automobile Manufacturers or SIAM. The sales were higher for the sixth consecutive month starting from August 2020, hinting at a clear recovery in auto sales on a sustained basis.

To an extent, this growth has been an outcome of pent-up COVID demand. In the 2-wheeler category, sales of scooters rose 9% to 4.54 lakh units while motorcycles grew 5% to 9.16 lakh units. In short, the entry level demand in the auto sector has been quite robust and that trend was visible in the entry level cars segment too.

In the midst of all this euphoria, the demand for three-wheelers remained muted, falling 57% to just 25,335 units, but that is hardly surprising. The overall auto sales were 4.97% higher and production rose to 17.32 lakh units. The downside risk is that commodity prices and lower sales volume could dent the margins of Indian auto manufacturers. In fact, Fitch has pointed out this risk in a recent note.

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