New Delhi: Low interest and fuel costs coupled with pent-up demand accelerated domestic passenger car sales by 10.39 percent last month, industry data showed on Friday.
According to the data furnished by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales during November stood at 173,111 units against 156,811 units in the like month of the previous year.
“Passenger vehicles are growing due to positive factors such as low interest rate, lower fuel prices, including the pent-up demand,” said Abdul Majeed, partner and auto expert with PriceWaterhouse.
“OEM’s (original equipment manufacturer) are playing their part with exciting launches at very attractive prices and deep discounts on some name plates.”
The data revealed that the total passenger vehicle sales, which include cars, utility vehicles and vans, went up by 11.40 percent to 236,664 units during the month under review from 212,437 units sold in November, 2014.
Sales of utility vehicles rose by 19.65 percent to 48,880 units. However, the off-take of vans declined by 0.69 percent to 14,673 units.
The industry data for last month showed a 8.56 percent growth in the overall commercial vehicles segment sales, which is a key indicator of economic activity.
The commercial vehicles segment off-take for November stood at 51,766 units, up from 47,686 units sold during the corresponding month of 2014.
Sales of three-wheelers rose by 8.33 percent in the month under review at 45,235 units from 41,755 units sold in November of 2014.
Sales of the overall two-wheelers segment which includes off-take for scooters, motorcycles and mopeds inched up by 1.47 percent to 1,320,561 units from 1,301,434 units sold in the like month of 2014.
On product specific basis, scooter segments’ sales in November grew by 2.45 percent at 396,024 units. Motorcycle segment reported a rise of 1.58 percent at 866,705 units.
However, moped segments’ sales declined by 6.16 percent at 57,832 units during the period under review.
In addition, overall exports across categories, too, declined during the month under review. It was lower by 17.61 percent at 275,639 units sold abroad from 334,552 units shipped out during November, 2014.
Total automobile sales in November were higher by 3.18 percent at 1,654,226 units from 1,603,312 units sold in the corresponding month of 2014.
“In order to have a sustained growth in the Indian automotive industry, it is absolutely necessary to have a robust growth in the overall economy which in turn depends lot more on the next level of reforms including introduction of GST (Goods and Services Tax bill),” Majeed added.