Car Sales in India Exceed Pre-Covid Levels as Demand Rebounds

(Bloomberg) -- Passenger vehicle sales in India surpassed pre-pandemic levels in the year through March as consumer demand recovered and supply disruptions eased.

Sales rose 27% to 3.9 million passenger vehicles in fiscal 2023, according to data released by the Society of Indian Automobile Manufacturers on Thursday. The group didn’t provide a breakdown of electric-vehicle sales. 

“Overall demand is growing,” SIAM President Vinod Aggarwal said at a briefing in New Delhi. “With efficient management of supply chains and better availability of commodities, especially for electronics items, prices have moderated over the year,” though they remain a concern.

However, prices of entry-level scooters and mopeds have increased due to regulatory changes that are hurting consumer demand, Aggarwal said. Two-wheeler sales stood at 1.58 million in 2023, down almost 25% from 2019.

India’s weather office on Tuesday forecast a normal monsoon this year, which could lift demand for scooters, Aggarwal said.

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