Industry

Passenger vehicle sales pick up after 11 months

Festive season sales were better than last year; we wish this continues in November-December, says SIAM president Rajan Wadhera.

Festive season sales were better than last year; we wish this continues in November-December, says SIAM president Rajan Wadhera.  

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New models spur utility vehicles: SIAM

Putting an end to 11 months of consecutive decline, wholesale passenger vehicle (PV) sales in the country saw a marginal increase in October, mainly on the back of some improvement in consumer sentiment during the festive season.

Sales of domestic passenger vehicles rose 0.28% to 2,85,027 units in October 2019, compared with 2,84,223 units in the year-ago month, according to data from Society of Indian Automobile Manufacturers.

However, overall wholesale vehicle sales continued to decline, falling 12.76% to 21,76,136 units. All segments of the industry saw a decline during October, barring utility vehicles, passenger carriers and quadricycles.

Car sales drop 6.3%

In the passenger vehicle (PV) segment, car sales were down 6.34% to 1,73,649 units, van sales fell 35% to 10,653 units, while utility vehicles were up 22.22% at 1,00,725 units. The utility vehicle sales were driven by demand for new models, including Kia Motor’s Seltos, MG Motor’s Hector, Hyundai Motor’s Venue.

The signs of reversal in sentiment has raised the industry’s hope for better sales in the next couple of months. “Sales in the festive season have been better than last year, which is a good sign. We wish this continues in November and December as well,” SIAM president Rajan Wadhera said.

He added that better availability of finance, lower lending rates and new model launches helped lift sentiment. “We also expect pre-buying to take off in January-March next year.”

As per SIAM data, total two-wheeler sales last month declined 14.43% to 17,57,264 units from a year ago. While motorcycle sales declined 15.88 % to 11,16,970 units, scooter sales fell 9.83% to 5,80,120 units.

Sales of commercial vehicles, seen as a reflection of the economy, dipped 23.31% to 66,773 units. While sales of medium and heavy commercial vehicles dropped over 50% to 15,334 units, light commercial vehicle sales fell 8.66% to 51,439.

Mr. Wadhera said that recent government measures, such as the package for the real estate industry, may help raise demand for commercial vehicles.

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Printable version | Dec 15, 2019 12:47:06 AM | https://www.thehindu.com/business/Industry/passenger-vehicle-sales-pick-up-after-11-months/article29947168.ece

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