On the other hand, the total sales of three wheelers and two wheelers in May 2022 were registered at 28,542 units and 12,53,187 units respectively. But they are still nowhere near pre-pandemic numbers. In May 2019, 51,650 units of three-wheelers and 17,25 204 units of two-wheelers were sold.
Despite an increase in passenger vehicle sales, May 2022 overall vehicle sales are still below pre-pandemic levels. In May 2019, a total of 20,04,137 vehicles were sold and in comparison, the total sales in May 2022 stood at 15,32,809. However, the industry witnessed a year-on-year growth of 245% as compared to 4,44,131 vehicles sold in May 2021.
Rajesh Menon, Director General, SIAM said that the sales of Two-Wheelers and Three-Wheelers in the month of May 2022 remain sluggish as they are also lower than 9 years and 14 years ago respectively. Passenger vehicle segment sales are still below 2018 levels.
He said that recent government interventions have helped in mitigating the supply side challenges. But the second hike in repo-rates by RBI and hike in third party insurance rates could make it more challenging for customers, which could hit demand.
The Reserve Bank of India (RBI) has increased the repo rate by 50 basis points with effect from May 8, taking the repo rate to 4.9 percent. Let us tell you that earlier on May 4, RBI had increased the repo rate by 0.4 percent. This is the second increase in the basis point in a month, raising the repo rate from 4.4 per cent to 4.9 per cent.
At the same time, from June 1, 2022, Third Party Vehicle Insurance Premium has also become expensive. With effect from June 1, 2022, the third party insurance premium on two wheelers with a capacity of more than 150cc has become 15% more expensive. Similarly, the premium on private four-wheelers like cars or SUVs from 1000cc to 1500cc has gone up by 6 percent.
However, from this month, people buying hybrid-electric vehicles are being given some relief from the insurance premium. As per the new rates, a discount of 7.5 percent is being given on the insurance premium of hybrid electric vehicle. Private electric cars with battery capacity up to 30kW will attract a premium of Rs 1,780. At the same time, private electric cars with battery capacity of 30kW to 60kW will have to pay a premium of Rs 2,904.