PV dispatches dip 4% in April as supply challenges remain, says SIAM

Passenger vehicle dispatches from factories to dealers in the domestic market declined by 4 per cent in April as supply side challenges continued for the automotive industry, industry body SIAM said on Wednesday.

Total passenger vehicle domestic wholesales stood at 251,581 units last month as compared to 261,633 units in April 2021.

Passenger car dispatches stood at 112,857 last month as against 141,194 units in the same month last year.

Utility vehicle wholesales however increased to 127,213 units from 108,871 units in the year-ago period.

Van dispatches remained flat at 11,511 units in April as against 11,568 units in April 2021.

Two-wheeler sales increased by 15 per cent to 11,48,696 units last month as compared to 995,115 units in April 2021.

Motorcycle sales increased to 735,360 units as against 667,859 units in April 2021. Similarly, scooter dispatches rose to 374,556 units last month as compared to 301,279 units in the year-ago period.

Three-wheeler wholesales also increased to 20,938 units last month as against 13,856 units in April 2021.

"Sales of passenger vehicles is still below the April 2017 figures, while two-wheelers are even below the April 2012 figures," SIAM Director General Rajesh Menon noted.

Three-wheelers are yet to reach normal levels, as sales are still less than 50 per cent of April 2016 figures, he added.

Manufacturers are working hard to manage the supplier ecosystem with agility and flexibility, as supply side challenges continue for the industry, Menon stated.

"Further, manufacturers are also monitoring the likely impact on demand, due to the recent hike in repo rate, as it would increase the lending rates to the customers," he said.

Earlier this month, the Reserve Bank of India had increased the repo rate, the rate at which it lends to commercial banks, by 40 basis points to 4.4 per cent in a bid to contain inflation that crossed 6 per cent for three successive months.