Domestic passenger car sales fell 10.08 per cent for the second consecutive month in August, on account of high interest rates and production cuts by market leader, Maruti Suzuki India.
In August 2011, domestic passenger car sales stood at 144,516 units, against 160,713 units in the same month last year, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).
“We are hopeful of a turnaround in sales with the onset of the festive season. Good monsoons should bring much needed relief.
However, any further rate hike would be fatal for the industry,” SIAM Director General, Mr Vishnu Mathur, told reporters here.
Mr Mathur said that sales in September and October would be crucial in determining industry performance this fiscal.
Entry-level cars being most sensitive to price hikes and high interest rates have taken the biggest hit, he added.
Bullish Two-wheels
Two-wheelers continued their bullish run with motorcycle sales registering a 15.43 per cent growth from 727,542 units in the year ago period to 839,772 units this August.
The scooter segment grew by 24.84 per cent from a base of 170,414 in August 2010 to 212,750 units in August this year.
“The two-wheeler market in India has a huge base, particularly in tier-2 and tier-3 cities. It has, in fact, surpassed our growth projection of 12 per cent for the segment,” said Mr Mathur.
Owing to good monsoons and driven by growth in the light commercial vehicle segment, sales of commercial vehicles grew by 22.62 per cent to 64,248 units in August 2011, from 52,394 units in the year-ago period.
Sales of light commercial vehicles grew by 34.46 per cent to 36,847 in August this year from 27,402 units in the same period last year.
Growth in this segment was largely driven by goods carriers.
Total sales of vehicles across categories registered a growth of 11.85 per cent to 1,412,945 units in August from 1,263,239 units in the same month last year.
Meanwhile, exports were robust, recording a growth of 36.13 per cent from 189,578 units in August 2010 to 258,071 units this month.
Passenger car exports recorded a 35.24 per cent growth with 49,341 cars sold this month from 36,483 units in the year-ago period.