Passenger vehicle dispatches rose 19% in June as chip supply improves

Passenger vehicle wholesales in India rose 19% year-on-year in June to 2,75,788 units on the back of improvement in semiconductor supplies, according to industry association SIAM.

Similarly, total two-wheeler wholesales increased to 13,08,764 units last month from 10,60,565 units, while three-wheeler sales grew to 26,701 units against 9,404 in June 2021.

Sales across segments rose to 16,11,300 units in June from 13,01,602 units in the same month last year.

In the first quarter, PV dispatches increased 41% to 9,10,431 units compared with a year earlier. Total commercial vehicle wholesales also rose to 2,24,512 units against 1,05,800 units. Two-wheeler dispatches jumped to 37,24,533 units as against 24,13,608 units. Similarly, three-wheeler dispatches grew to 76,293 units in the first quarter from 24,522 units in the year-earlier period.

“Recently, the government has taken significant measures to ease the inflationary pressure and help the common man by reducing central excise duty on petrol and diesel and changing the duty structure to moderate prices of steel and plastic,” SIAM Director General Rajesh Menon said.

He added that the industry keenly looked forward to similar support on CNG prices, which had seen an ‘exponential’ increase in the last seven months.

“Support on CNG prices would help the common man, facilitate public transport and will enable a cleaner environment,” Mr. Menon said.