Domestic sales of automobiles for November grew 46 per cent, to 1,037,133 units, over the corresponding period last year.
The Society of Indian Automobile Manufacturers (SIAM), which released the figures said the sales were the highest for the current year. The second highest sales growth was in August when the industry sales grew by 24 per cent. Barring single digit growth in May and September, vehicle sales since April 2009 has been in double digits, it said.
November numbers rose on the back of record sales of passenger vehicles comprising cars and utility vehicles, and from the positive growth, for the fourth consecutive month in sales of medium and heavy commercial vehicles.
“Apart from the strong recovery made possible by the fiscal stimulus packages and improving sentiments, November sales was aided by the disbursement of the balance amount stipulated under the Sixth Pay Commission for PSU employees. The payouts will continue until December, so there will be growth going forward,” said S Ramnath, vice president (research) of IDFC SSKI. Attractive interest rates on vehicle loans by public sector banks also contributed to the surge in sales.
November sales of passenger vehicles grew an impressive 66.54 per cent. The industry sold 166,653 units of vehicles. “November car sales are the highest ever for this year and have come on the back of a low base of last year. All segments of the passenger vehicle sector have posted the highest growth on a year-on-year basis,” said Shashank Srivastava, Chief General Manager (Marketing) of Maruti Suzuki.
Large commercial vehicles sales, which turned positive in August held on to the trend. While October sales grew 64 per cent, November sales of large trucks and buses grew a whopping 132.66 per cent. The industry sold 19,369 vehicles against 8,325 last year. Last year was a low base in which the segment dipped between 50 and 70 per cent in the last quarter. Much of this growth for the last four months is directly linked to GDP growth and massive infrastructure spending by the government. “Truck operators who postponed buying last year citing freight overcapacity are returning to the market,” said Sugato Sen, Senior Director of SIAM.
Total sales of commercial vehicles for November, including smaller light commercial vehicles, stood at 40,847 units, which is 98 per cent growth against the number posted last year.
| SALES IN FIFTH GEAR | |||
| Category | November 2008 | November 2008 | % change |
| Two-wheelers | 567,502 | 790,613 | 39.31 |
| Three-wheelers | 23159.00 | 39020.00 | 68.45 |
| Passenger vehicles | 99983.00 | 166,653 | 66.54 |
| Commercial vehicles | 20637.00 | 40847.00 | 97.99 |
| Total | 711,281 | 1,037,133 | 45.80 |
| Source: SIAM | |||
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Two wheeler sales for November grew 39.31 per cent. The motorcycle and scooter manufacturers combined sold 790,613 units. Three wheeler manufacturers sold 39,020 units of goods and passenger vehicles last month, which is 68.45 per cent growth on a year-on-year basis. Much of this growth has come from autorickshaws.
“Going forward we expect the same trend to continue till March 2010. Rising interest rates can, however, play spoilsport,” said Srivastava. “Should stimulus packages be withdrawn prematurely, future sales growth will get affected,” said Sen.