Buoyed by positive passenger car sales in 2014-15, the Society of Indian Automobile Manufacturers (SIAM) Friday said it expects a moderate sales growth to continue in the current fiscal.
"We expect a moderate sales growth to continue this fiscal. The revival in sales was on the back of small base but expect the sales to be in line with the economic revival," SIAM director general Vishnu Mathur told IANS.
"Rural sales is a bit of concern. We hope that the rural sales revives with a good monsoon this year," Mathur added.
Industry analysts too forecast the sales growth to continue in line with economic revival, slow inflation, lower fuel cost and cut in interest rates by the Reserve Bank of India.
"We expect the sales growth to continue. With cuts expected in the interest rates this fiscal, the continued low price of crude oil will boost sales," Bharat Gianani, senior equity research analyst, auto and auto ancillary, told IANS.
"With an expected normal monsoon and better farm incomes, the rural market will also improve this fical."
Indian automobile market is highly cost sensitive, as nearly 60-65 percent of vehicles get financed. A cut in interest rates and low fuel cost is expected to boost consumer sentiment this fiscal.
On Friday, SIAM data showed that domestic passenger car sales increased by 4.99 percent in 2014-15 and stood at 1,876,017 units from an off-take of 1,786,826 units in 2013-14.
This is the first time in three years that passenger vehicle sales have recorded positive growth. High fuel and interest costs coupled with slowdown in economic activity had dented automobile sales.
According to data furnished by SIAM, total passenger vehicle sales, which include cars, utility vehicles and vans, went up by 3.90 percent at 2,601,111 units from 2,503,509 units sold in the corresponding fiscal.
However, the industry data for 2014-15 reported a 2.83 percent decline in the overall commercial vehicles segment sales, which is a key indicator of economic activity.
The commercial vehicles segment off-take stood at 614,961 units during 2014-15, down from 632,851 units sold in the corresponding 2013-14 fiscal.
Three-wheeler sales rose by 10.80 percent in the fiscal under review at 531,927 units from 480,085 units sold in 2013-14.
Total two-wheeler sales in the period under review grew by 8.09 percent at 16,004,581 units from 14,806,778 units sold in 2013-14.
Exports for 2014-15 went up by 14.89 percent at 3,573,806 units from 3,110,584 units shipped out during 2013-14.
Total vehicle sales during the last financial year grew by 7.22 percent at 19,752,580 units from 18,423,223 units sold in the corresponding period of 2013-14.
Data furnished by SIAM showed that passenger car sales in March 2015 were up 2.64 percent at 176,011 units as against of 171,491 units in the corresponding month of last year.
Total passenger vehicle sales in the month under review went up by 2.66 percent at 244,395 units from an off-take of 238,061 units in March 2014.
For last month, SIAM reported a 2.14 percent increase in sales of commercial vehicles, which is a key indicator of economic activity.
Sales stood at 65,470 units from 64,101 units in the corresponding month of last year.
However, total two-wheeler sales in the month under review marginally declined by 0.84 percent at 1,323,184 units from 1,334,450 units sold in the corresponding month of 2014.
Total scooter sales in the month under review grew by 11.14 percent at 395,901 units from 356,233 units sold in the like period of last year.
Total exports for the month went down by 6.57 percent at 251,225 units from 268,891 units being shipped out.
Total vehicle sales in March slipped by 0.15 percent at 1,675,432 units from 1,677,890 units sold in the corresponding month of last year.
