Consumption is one of the reliable parameters of the health of an economy. Like every other capital intensive sector, which has the ability to influence entire supply chain, the automobile industry has not been immune to the effects of COVID-19 pandemic.
The automobile industry witnessed fall in growth metrices in August 2019 as compared to the corresponding period in 2018; passenger vehicles and two-wheelers registered de-growth of (-) 32% and (-) 22%, respectively, then. This low base effect is acting as a smoke screen to the numbers released by the Society of Indian Automobile Manufacturers (SIAM) for August 2020.
SIAM reported 3% year-on-year (Y-o-Y) growth in two-wheeler segment and has higher hopes from the upcoming festive and marriage season. Passenger cars and vehicles logged in a much needed uptick in sales, with both these segments registering growth marginally above 14%.
Industry experts have envisaged more sunshine for the two-wheeler segment due to rise in personal mobility option as a substitute to commuting in public transport.
Sales of utility vehicles was on par with expectations, registering a Y-o-Y growth of 15.54%. The auto-rickshaw / tempo, which is a big commuting / goods transport option across the country, clocked a drop in sales by 75.29% in August, as compared to corresponding period last year. In conclusion, the industry body sounded hopeful with bated breath.