Industry

Fuel prices, reduced excise duty help push car sales

Sales of commercial vehicles rose 9.05 per cent. File Photo

Sales of commercial vehicles rose 9.05 per cent. File Photo  

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Domestic car sales in November stood at 1,56,445 units, up 9.52 per cent, as compared to 1,42,849 units in the same month of 2013.

Domestic passenger car sales registered a 9.52 per cent growth at 1.56 lakh units in November, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday here. Sales stood at 1.43 lakh units in the same month last year. The growth was seen mainly on the back of lower fuel prices and excise duty cuts.

“Sales have grown in November as the overall sentiment has improved due to overall cost of ownership having come down with the lowering of fuel prices and benefits of reduced excise duty continuing,” SIAM Director- General Vishnu Mathur said.

“Hopefully, we are on a recovery path. If you want it deep-rooted, interest rate cut is required so that people sitting on the fence start buying,” Mr. Mathur said, adding that the industry was is hopeful that the government would extend the excise duty relief till the budget.

Even as car sales have been fluctuating, growth for the period April to November has been positive. Sales grew 3.82 per cent at 1.21 million units in April-November 2014 against 1.16 million units a year-ago period.

Market leader Maruti Suzuki India showed a growth of 14.87 per cent at 82,306 units in domestic passenger car sales, while Hyundai Motor India sales grew 6.04 per cent at 35,448 units. Honda Cars India saw 24.72 per cent growth at 11,612 units. Tata Motors’' sales grew by 30.03 per cent to 10,286 units. However, Mahindra & Mahindra’s sales in the said month declined by 16.22 per cent to 13,613 units.

In two wheeler segment, Motorcycle sales declined by 3.05 per cent to 8.54 lakh units, while scooter sales were up 26.40 per cent at 3.87 lakh units.

“Motorcycle sales have been hit as rural sales have been impacted by weak monsoon. It is the scooter segment, which has been during the growth of two-wheeler segment,” Mr. Mathur said.

Sales of commercial vehicles rose by 9.05 per cent to 47,686 units in November.

“Medium and heavy commercial vehicles (M&HCVs) sales grew by 40 per cent in November, the highest during the fiscal,” he said.

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Printable version | Jan 18, 2020 9:56:08 AM | https://www.thehindu.com/business/Industry/domestic-car-sales-up-952-in-november/article6675625.ece

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