Signaling a recovery, car sales registered double-digit growth in June after 10 months of subdued sales, rising 14.76% to 1,60,232 units on the back of improvement in consumer sentiments and buyers advancing their vehicle purchases in anticipation of a hike in price from July onwards.
As per the data released by industry body – Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales stood at 1,39,624 units in the year-ago month.
Car prices were expected to go up in July, as the reduction in excise duty announced by the previous government in the interim budget in February, was due for an expiry on June 30. The present government however extended the duty benefits till the end of December this year, giving a boost to the auto industry reeling under a 2-year slowdown.
"Factors like speculative sales and positive sentiments created by formation of stable government and extension of excise duty reduction have helped the passenger car sales post double digit growth in June after ten months," SIAM president, Vikram Kirloskar told reporters in New Delhi.
He said people went ahead with their buying plans in June as there was no clarity whether the government would extend the excise duty reduction beyond June 30.
"So speculative sales during the last month was one of the factor that affected surge in sales. Whether we will be able to sustain this kind of growth in the coming months is what needs to be seen," Kirloskar said.
Domestic sales of companies like Maruti Suzuki, Hyundai Motor India and Honda Cars India grew in June, while Tata Motors, Mahindra and Mahindra (M&M) and General Motors continued to remain in negative territory. Biggest carmaker – Maruti Suzuki saw a robust growth of 31.1% in June, while Hyundai and Honda Cars grew 9.5% and 75%, respectively.
Motorcycle sales last month climbed 9.63% to 8,76,196 units from 7,99,254 units a year ago, while total two-wheeler sales in June rose 12.99% to 12,61,589 units.
Showing signs of revival, SIAM has indicated an improvement in the commercial vehicle (CV) sales going ahead. Sales of CVs declined 9.03% to 51,119 units in June, according to the industry body. "For the last three months, constant improvement is happening in the CV space. Though it still remains in the negative territory, the opening of some of the mining and infrastructural projects has helped the sector," SIAM director general, Vishnu Mathur said.
(With inputs from PTI)
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