National sales: monthly
Sales of two-wheelers have also been hit hard compared to March 2022. Only 11,84,210 two-wheelers were sold in March this year, while the sale of 14,96,806 two-wheelers was recorded in March 2021 Sales of passenger and cargo three-wheelers saw a slight decline from 32,310 units in March 2021 to 32,088 units in 2022. Overall, the two-wheeler industry
“Overall, the industry experienced a (-)6% decline in FY22. All segments are facing supply-side challenges and the industry has yet to experienced a full recovery from the disruptions it has faced since early 2020. Passenger vehicles, commercial vehicles and three-wheelers grew from a weak industry base in 2020-21, but the segments of two-wheelers fell again by (-) 11% compared to the previous year. said Mr. Rajesh Menon, Managing Director of SIAM.
Comparison with previous years
Persistent challenges due to the pandemic, ever-increasing supply chain issues and semiconductor shortages are certainly to blame for the decline. However, rising commodity and precious metal prices have pushed entry-level automobiles and two-wheelers beyond the reach of the common man. Compared to April 2020, commodity costs are up at least 90% across the board. HR steel is up 91.6%, aluminum 136.7% and nickel 219.6%. Precious metals such as rhodium increased by 124.9% in March 2022, compared to prices in April 2020. Prices for palladium and platinum saw an increase of 22% and 38.2% respectively. The increase in freight costs induced by the Russian-Ukrainian war is also to some extent to blame.
Raw materials and precious metals
Mr. Kenichi Ayukawa, President of SIAM, said, “Despite some recovery from a weak base, sales of all four segments of the automotive industry are even below the level of 2018-19. While some segments like commercial vehicles and SUVs are seeing improved demand, mass segments like two-wheelers and small cars are facing serious affordability issues.
However, continued efforts to indigenize vehicles and components by industry may prove to be a silver lining during the current crisis. India achieved its highest two-wheeler exports at 4,44,300 units in FY21-22. Exports of passenger vehicles also increased from 4.04 lakh units in FY20-21 to 5.78 lakh units in FY21-22.
Speaking of export performance, Mr. Kenichi Ayukawa said, “We are pleased to report that all four industry segments have increased their exports. In fact, two-wheelers achieved their highest ever exports. It is good to see that Indian products are gaining acceptance worldwide for their quality, cost and performance.