However, two-wheeler sales slowed down last month.
Total domestic car sales in the country in the first half of the financial year 2009-10 rose by 14.51 per cent year-on-year to 5,782,920 units, according to automobile sales figures released by the Society of Indian Automobile Manufacturers (Siam).
The jump in sales for the April-September period came from the double-digit growth posted by the passenger vehicle segment (comprising cars and SUVs) which grew by 13.46 per cent, by the 15.68 per cent spurt in two-wheeler sales and by an increase of 12.37 per cent in sales of three-wheelers.
A positive sales growth in the medium and heavy commercial vehicle segment (M&HCV), which had been in a free fall since June 2008, also contributed to the rise in overall vehicle sales.
| BUMPER BUSINESS | |||
| Segment | April-Sept ‘08 | April-Sept ‘09 | % chg |
| Passenger vehicles | 779,217 | 884,118 | 13.46 |
| Commercial vehicles | 221,685 | 220,529 | -0.52 |
| Three-wheelers | 184,934 | 207,809 | 12.37 |
| Two-wheelers | 3,864,443 | 4,470,464 | 15.68 |
| Total | 5,050,279 | 5,782,920 | 14.51 |
| Source: Society of Indian Automobile Manufacturers | |||
"The stimulus packages announced by the government since December 2008, the Sixth Pay Commission’s recommendations, reduced prices of cars following excise duty cuts, launches of new car models, lower car loan rates by PSU banks and improving sentiments in the stock market have all contributed to the increased sales of vehicles in the first six months,” Siam Director General Dilip Chenoy said.
Vehicle sales in the month of September grew by 9.60 per cent to 1,092,262 units. Car sales grew by double-digits — 20.32 per cent — which is a continuation of the double-digit growth posted in the months of July and August. The total number of cars sold in September in the domestic market stood at 167,524 units.
Two-wheeler domestic sales for the month of September rose by 7.67 per cent to 838,150 units. This is the first month in the current financial year when the segment clocked a single-digit growth, after having registered double-digit sales growth for the rest of the current financial year. Industry executives attribute the sales slowdown to the high base effect of last year, production constraints and the shortage of two-wheeler tyres.
Three-wheeler sales in September grew by 13.51 per cent to 41,137 units. While the goods carrier segment posted a dip of less than 1 per cent, sales of passenger segment three-wheelers grew by 17.49 per cent.
Sales of total commercial vehicles, including light commercial vehicles, for the month of September grew by 6.46 per cent to 45,451 units. Growth in this segment has been positive since July this year.
The M&HCV segment, comprising goods carriers, saw a growth of 2.53 per cent to 17,401 units in the month of September. This is a continuation of the positive growth witnessed by this segment since August this year, when sales grew by 1 per cent.
Analysts have said there are ample positive factors going forward, like the festival season, improving monsoons, general pick-up in industrial activity and sufficient liquidity — all of which are expected to drive overall auto sales higher.
“But the effects of the government's borrowing in the next four months may cause interest rates to rise, and that is a concern,” Angel Broking analyst Vaishali Jajoo pointed out.
