India passenger vehicle sales nearly doubled in September

Vehicles queue at a traffic light on a hazy morning in New Delhi, India.  REUTERS/Anushree Fadnavis/File photo

BENGALURU  -Passenger vehicle sales for September in India nearly doubled to 307,389 units from a year ago, the Society of Indian Automobile Manufacturers (SIAM) said on Thursday.

Production for the month also rose 88 percent to 372,126, the Indian auto industry lobby group said.

Sales in the world’s fourth-largest car market have rebounded as crippling semiconductor shortages ease. Demand has also been propped by the festive season, which typically starts around the month of October when many Indians make big-ticket purchases.

“Recent increase in the prices of CNG fuel, higher repo rates and the Russia-Ukraine conflict are of concern and could impact the market in the coming months,” SIAM President Vinod Aggarwal said.

Passenger vehicle sales across the July-September rose 38.4 percent to 1,026,309 units, SIAM said.

Two wheeler sales, a good indication of rural buying power, rose to 12.9 percent 1,735,199 units and 13 percent for the quarter.

“Off-take of entry level two-wheelers and entry level passenger vehicles have been of concern especially as the rural demand has not picked up,” said Rajesh Menon, director general of SIAM.

Monthly sales for mopeds fell nearly 23 percent to 47,613 units.