New Delhi, July 11 (IANS) Passenger cars sales declined by 1.41 per cent for the first quarter (Q1) of the current fiscal to 475,799 units from 482,614 units sold during the corresponding period of 2015-16, industry data showed on Monday.
According to the Society of Indian Automobile Manufacturers (SIAM), healthy monsoon rains, coupled with the positive impact of the Seventh Pay Commission and the rise in economic activity like infrastructure creation should drive the sector’s growth.
“Good monsoon, revival in industrial growth and economic activity, and also the Seventh Pay Commission’s impact should help drive growth,” said SIAM Director General Vishnu Mathur at an event held here to release the sales data.
The industry data further showed that the utility vehicles’ (UVs) off-take augmented by 38.04 per cent to 176,788 units.
Segment-wise, the total passenger vehicle sales, which include cars, UVs and vans, went up by 6.66 per cent to 697,154 units in the period under review.
Industry observers pointed out that better monsoon, positive customer sentiments and pay commission’s bonanza should help auto industry to perform much better this fiscal.
“The outlook for overall growth in the Indian automotive sector looks positive this fiscal year,” said Abdul Majeed, Partner at Price Waterhouse.
“Many positive factors are likely to support this growth such as positive customer sentiments, new launches by OEM (original equipment manufacturer) to address customer changing preferences, better monsoon, better off take in both rural and urban market.”
Moreover, the data disclosed a 12.99 per cent sales growth in the overall commercial vehicles segment, which is a key indicator of economic activity. The segment’s off-take for April-June period, 2016 stood at 166,956 units.
Besides, three-wheelers sales reported healthy growth of 23.39 per cent to 139,497 units last month.
Overall, sales of two-wheelers, which includes scooters, motorcycles and mopeds, too, rose exponentially by 14.26 per cent to 4,542,736 units.
Product-wise, scooter sales in the month under review grew by 27.12 per cent to 1,372,337 units, whereas the motorcycle sub-segment sales, logged a growth of 8.87 per cent to 2,953,349 units.
In addition, mopeds’ off-take zoomed by 18.33 per cent to 217,050 units.
However, overall exports across categories declined by 9.70 per cent to 829,010 units which were shipped out during last month.
Total automobile sales last month were higher by 13.42 per cent to 5,546,343 units from 4,890,099 units sold in April-June period, 2015.
For June, 2016, SIAM data revealed a declined in passenger cars sales. The sub-segment’s off-take diminished by 5.18 per cent to 154,237 units from 162,655 units sold during the corresponding month of last year.
In contrast, the utility vehicles’ (UVs) off-take zoomed in the month under review, as it was buoyed by new launches. The UVs sales accelerated by 35.24 per cent to 55,825 units.
“We have seen some recovery in sales during June. However, the sales of passenger cars declined,” said Mathur.
The director general of SIAM credited the growth in sales of UVs’ segment to the new launches of compact sports utility vehicles (SUV).
The data furnished by SIAM reported that the total passenger vehicle sales went up by 2.68 per cent to 223,454 units in the month under review.
The industry data for June showed a sales growth of 5.63 per cent growth in the overall commercial vehicles segment, which is a key indicator of economic activity.
The commercial vehicles segment’s off-take for June, 2016 stood at 56,032 units.
Three-wheelers sales, too, clocked a healthy growth of 10.22 per cent to 48,373 units last month.
The overall, sales of two-wheelers rose by 12.26 per cent to 1,468,035 units.
Product-wise, scooter sales were up by 21.32 per cent to 449,756 units, motorcycle sales logged a growth of 7.52 per cent to 943,680 units and mopeds’ off-take zoomed by 25.79 per cent to 74,599 units.
However, overall exports across categories declined by 10.70 per cent to 282,533 units which were shipped out during last month.
Nevertheless, the total automobile sales last month were higher by 10.70 per cent to 1,795,894 units from 1,622,254 units sold in June, 2015.