Domestic car sales were marginally up in September, the second straight month of increase, raising hopes of a good festival season.
The industry sold 1.56 lakh cars – the highest number so far this financial year – up 0.73 per cent over the 1.54 lakh units it sold in September last year.
Two-wheeler sales grew 18.39 per cent annually to 12.65 lakh units during the month compared with 10.69 lakh units in September 2012, the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.
However, commercial vehicle sales continued to plunge. Total commercial vehicle sales during the month were at 51,680 units, down 27 per cent from 70,746 units in September 2012. Three-wheeler sales saw a decline of 5.48 per cent to 46,839 units in September year-on-year. “The good news is that for cars, passenger vehicles, utility vehicles and two-wheelers, September was the best month in terms of absolute numbers this fiscal. I hope we can continue with this momentum,” Vikram Kirloskar, President, SIAM, told reporters here.
However, the commercial vehicles sales were a concern for the industry, said Vishnu Mathur, Director-General, SIAM, adding that it was the lowest in the last 38 months and there is no sign of improvement.
The auto industry body also said that it was unlikely that passenger car sales would post positive growth this fiscal under the current economic circumstances.
The only hope is that because of the good monsoon, sales of small cars and two-wheelers are expected to be better due to demand from the rural markets during the festival season.
Kirloskar addedthat macroeconomic challenges such as high interest rates, inflation and fuel prices continue to affect consumer sentiments.
He also said employment of contract workers and trainees across the chain — from component suppliers to manufacturers to dealers — has been affected because of these reasons. He said there has been inventory pile up of around 25-30 per cent in the passenger vehicles segment.
He added the stimulus package that the industry was seeking from the Government was also hard to get at this point in time.