How were the two-wheeler and four wheeler sales for the month of December 2020?

There has been a smart bounce in the auto sales for the month of December 2020, largely on the back of the lag effect of the festival season. Dec-20 has been a positive month; but more for two wheelers and to an extent for four wheelers too. Domestic passenger car sales grew by 13.59% while two-wheeler sales were up 7.42% on a yoy basis in December 2020.

In the four wheeler space, the total production of passenger vehicles or PVs grew by 24.17% to 315,838 units in Dec-20. While the domestic segment performed well, the exports segment was not really up to the market. Exports for the month of December 2020 actually fell by 13.49% to 57,050 units largely on the back of weak global demand.

Two wheelers saw output growth across the board. Production of two-wheelers were up 9.08% at 15,29,242 units while exports were up by 23.62%. However, it must be noted that the export growth was largely driven by Bajaj Auto, which derives nearly 60% of its sales from the export market.

There was fairly discouraging news from the three-wheeler segment. The three-wheeler segment clocked a sharp -58.87% fall in sales at just 22,126 units in Dec-20 as the plethora of public transport restrictions and weak income levels among small businesses dented the demand for three wheelers.