Domestic passenger vehicle sales rose 1.55% in October, snapping three months of consecutive decline, although low market sentiments affected festive season demand, Society of Indian Automobile Manufacturers (SIAM) said Friday.
According to the latest data released by SIAM, passenger vehicle (PV) in October stood at 2,84,224 units against 2,79,877 units a year ago.
In July, August and September, PV sales have declined by 2.71%, 2.46% and 5.61%, respectively.
SIAM director-general Vishnu Mathur said positive growth in PV sales witnessed in October is reflective of the overall trend in the automobile industry.
Overall, the data shows a pretty healthy growth. There is a positive movement in the automobile industry, he said.
Vehicle sales across categories
registered a growth of 15.33% to 24,94,426 units from 21,62,869 units in October 2017.
On PVs, Mathur said, “The slow growth is mainly due to base effect besides other factors such as increase in insurance, high fuel prices and decline in stock market impacting sentiments.”
When asked if those factors affected festive mood, Mathur said, “The real impact of festive sales will be known only next month as Diwali was in November this year. However, till the end of October, sales have been slow and it wasn’t like festive season.”
He, however, said SIAM was maintaining its growth forecast for PVs at 7-9% for the fiscal.
In the April-October period this fiscal, total PV sales have grown by 6.10% to 20,28,529 units against 19,11,883 units a year ago, SIAM said.
SIAM deputy director-general Sugato Sen said October PV sales were as per expectations and going forward the industry body expects it to pick up further in the remaining part of the fiscal.
During the month, market leader Maruti Suzuki India posted a marginal growth of 0.61% in PV sales at 1,35,948 units. Rival Hyundai Motor India also posted a 4.87% increase at 52,001 units.
Homegrown utility vehicle major Mahindra & Mahindra posted a 2.75% increase in its PV sales at 24,056 units in October.
In October, car sales grew marginally by 0.38% to 1,85,400 units last month against 1,84,706 units a year ago.
SIAM said total two-wheeler sales in October were up 17.23% to 20,53,497 units against 17,51,608 units a year ago.
The growth was mainly on the back of good motorcycle sales, which increased 20.14% last month to 13,27,758 units compared to 11,05,140 units a year ago.
“There is a strong demand coming from rural markets for motorcycles which is driving the sales growth to a large extent,” Mathur said.
During the month, market leader Hero MotoCorp saw its bike sales grow by 18.83% to 6,42,374 units. Rival Bajaj Auto also witnessed a 33.1% jump to 2,81,582 units, while Honda Motorcycle and Scooter India (HMSI) also posted a 16.33% growth in its bike sales at 1,68,020 units in October.
Scooter sales in October were at 6,43,382 units against 5,71,431 units in the same month last year. Market leader HMSI’s scooter sales were at 3,22,115 units in October, up 9.89%. Chennai-based TVS Motor posted a 41.46% jump in its scooter sales at 1,45,737 units, while Hero MotoCorp witnessed a decline of 8.5% at 73,685 units in October this year.
Sales of commercial vehicles jumped 24.82% to 87,147 units in October against 69,816 units in the year-ago month, SIAM said.
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Source: Financial Express