Sales of passenger vehicles segment, including cars, utility vehicles and vans, posted a 15% jump in domestic sales in April compared with the same month last year.
The growth was mainly driven by new models and more than 23% rise in sales posted by market leader Maruti Suzuki.
However, commercial vehicle sales saw a steep fall of 23% due to impact of demonetisation as well as advance buying by customers ahead of new BS IV emission norms coming into effect from April 1.
Passenger vehicles sales grew to 2,77,602 units in April 2017 from 2,42,060 units in the same month last year. Car sales grew at more than 17% to 1,90,788 units, while utility vehicles saw a nearly 14% growth to 70,691 units, according to industry body SIAM’s data.
New factories
“Factors such as commissioning of new manufacturing plants and new model launches led to strong growth in the passenger vehicle segment during the month,” SIAM deputy director general Sugato Sen said. He explained that the segment also grew as market leader Maruti Suzuki saw over 23% growth during the month with the Gujarat plant becoming operational and easing supply pressure.
The sectoral body also pointed out that the industry is will invest about ₹1 lakh crore for upgrading products so that they meet upcoming safety and emission norms.
“The figures which we are getting from member companies is almost ₹1 lakh crore,” SIAM Executive Director (Technical) K. K. Gandhi said, adding that the investment will go into developing new platforms, emission norms, safety upgrades and fuel efficiency norms.
