New Delhi: Vehicle sales in India grew by 13.5% in May 2023 compared to the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

The total sales of vehicles in May 2023 stood at 3,34,247 units, compared to 2,94,392 units in May 2022.

The growth was led by passenger vehicles, which grew by 14.5% to 2,57,841 units in May 2023. Two-wheeler sales grew by 12.5% to 1,45,959 units, while three-wheeler sales grew by 16.5% to 30,447 units.

Vinod Aggarwal, President of SIAM, said that the growth in vehicle sales is a positive sign for the Indian automobile industry. He said that the industry is in a positive transition phase, with new powertrain technologies being offered to consumers.

Aggarwal said that the industry is confident that the growth trend will continue in the coming months, supported by the prevailing economic environment.

The growth in vehicle sales is in line with the government’s target of increasing the share of electric vehicles in the country to 30% by 2030. The government has announced a number of incentives for the adoption of electric vehicles, including a subsidy of up to ₹20,000 for electric two-wheelers and ₹30,000 for electric three-wheelers.

The government has also announced a FAME II scheme, which will provide incentives for the purchase of electric vehicles and the setting up of charging infrastructure. The FAME II scheme has a budget of ₹10,000 crore.

The growth in vehicle sales is also a positive sign for the Indian economy. The automobile sector is a major contributor to the Indian economy, and its growth will help to boost economic growth.

The Indian automobile industry is expected to grow at a CAGR of 10% in the next five years. The growth will be driven by factors such as rising incomes, increasing urbanization, and the government’s focus on manufacturing.