Vinod Aggarwal, the President, along with Rajesh Menon, Director General of SIAM and Prashant Banerjee, Chief Executive Director, of the Society of Indian Automobile Manufacturers (SIAM) took center stage at the recent SIAM event held at the Indian Habitat Centre in New Delhi. The event highlighted the performance figures for the first quarter of 2023, shedding light on the remarkable progress made by the Indian Auto Industry. Aggarwal, along with industry leaders, discussed the latest developments focusing on the industry’s resilience, adaptability, and commitment to sustainability.
The SIAM event not only depicted the industry’s performance but also showcased its resilience and adaptability in navigating through dynamic market conditions. Manufacturers and industry stakeholders have been relentless in their pursuit of innovation and sustainability, ensuring that the Indian auto industry remains at the forefront of technological advancements and environmental consciousness. With the implementation of various government initiatives, such as the promotion of electric vehicles and the push for cleaner fuels, the Indian auto industry is poised for a promising future.
Vinod Aggarwal acknowledged the significance of these initiatives, stating, “The government’s support and promotion of electric vehicles and cleaner fuels have provided the industry with a clear direction for sustainable growth. The successful transition to BS 6 Phase 2 Emission Norms demonstrates the industry’s commitment to environmental protection and sustainable growth.” In his role as the President of SIAM, he also emphasized the industry’s successful transition to the stringent BS 6 Phase 2 Emission Norms during Q1. Despite temporary declines in some sub-segments, the overall performance of Passenger Vehicles, Two-Wheelers, Three-Wheelers, and Commercial Vehicles remained positive.
During the event, Rajesh Menon, Director General of SIAM, highlighted the record-breaking sales of Passenger Vehicles in Q1, surpassing the significant milestone of 2 million units for the first time in a half-year period. This achievement reflects the robust demand and consumer confidence within the Indian market. Although Two-Wheelers showcased growth, the figures still remain below the levels seen in the 2016-17 period. Despite this, the industry remains optimistic about future prospects in this segment.
The Three-Wheeler segment witnessed a substantial surge in domestic sales, indicating a positive consumer sentiment. However, the sales figures are still lower than those recorded in 2018-19. SIAM and industry stakeholders are actively working to address challenges and bolster the growth trajectory of this segment. On the other hand, Commercial Vehicles faced a slight decline compared to the previous financial year, influenced by economic conditions and fluctuating freight demand. Industry players are closely monitoring the situation and strategizing to rebound from this temporary setback.
Talking about the challenges faced by the Indian auto industry, he shared, “I think the challenges are going to be, if we talk about the overseas markets. There are a lot of challenges because of the geopolitical situation and the global demand of some countries, which has impacted the exports from the country. So, exports of the auto sector have come down, especially for two-wheelers. That is one challenge. Domestically, the challenges are the high interest rates. Despite the government holding the interest rates at the current level for the last two policy reviews, they are still high. So, whenever there is price sensitivity, customers tend to defer their purchases. These are some of the challenges.”
As the first quarter of 2023 concludes, the Indian auto industry stands resilient, showcasing its ability to adapt to changing norms and market conditions. With a steadfast commitment to innovation, sustainability, and customer satisfaction, the industry is set to achieve new milestones in the coming quarters, driving growth and contributing to the nation’s economy.