Car sales rise 12% in August, passenger vehicles up 14%

Sales of commercial vehicles rose by 23.22% to 65,310 units in August

Domestic passenger vehicle sales grew 13.76 per cent in August as consumers tried to make the most out of price cuts after the goods and services tax (GST) implementation, ahead of an imminent hike in cess rates.

According to the Society of Indian Automobile Manufacturers (Siam), passenger vehicle sales were at 294,335 units in August as compared to 258,737 units in the same month last year. Car sales were up 11.8 per cent to 198,811 units as against 177,829 units in August last year, the Siam said.

Last month, the utility vehicle segment clocked the second-highest monthly sales for the ongoing financial year at 78,664 units as against 65,760 units in the year-ago month, up by 19.62 per cent. In July, the segment saw the biggest sales for 2017-18 at 86,874 units with 35.5 per cent growth.
 

 

“Overall the market is coming back, whether it is sustainable or not, we will have to wait and see,” said Vishnu Mathur, director general, Siam.

On the reasons for the growth in passenger vehicles sales, Mathur said: “Besides pent-up demand continuing from July post-GST price cuts, many consumers advanced purchasing vehicles as reports came about the imminent hike in the GST cess rates.”

 

In August, market leader Maruti Suzuki India’s passenger vehicle sales grew by 26.16 per cent at 151,270 units. Its car sales were at 115,897 units during the month, a growth of 28.39 per cent, while that of UVs grew by 27.59 per cent at 21,442 units in August.

 

Rival Hyundai Motor India’s passenger vehicles sales rose by 9.03 per cent at 47,103 units. Its car sales were at 36,639 units, up 5.5 per cent, and UVs clocked 10,410 units, up 22.86 per cent. Mahindra & Mahindra clocked a growth of 5.91 per cent in its passenger vehicle sales at 19,325 units during the month.

 

The Siam said total two-wheeler sales in August grew 14.69 per cent to 1,891,062 units compared to 1,648,871 units in the year-ago month.
 

“The growth in the two-wheeler segment is a reflection of the rural market coming back to normalcy with the impact of demonetisation wearing off,” Mathur said.

 

Motorcycle sales jumped by 12.93 per cent to 1,135,699 units as against 1,005,654 units in August 2016. Sales of commercial vehicles rose by 23.22 per cent to 65,310 units in August. Vehicle sales across categories registered a growth of 14.49 per cent to 2,302,158 units from 2,001,802 units in August 2016. In the scooters segment, total sales were at 6,73,444 units last month as against 5,67,782 units in August last year, reporting a growth of 18.61 per cent.