Sales of passenger cars and commercial vehicles in the domestic market continued to fall in November amid weak macroeconomic conditions. The automobile manufacturers association does not expect any revival before next year’s general elections.
This is the eighth consecutive month of decline for medium and heavy commercial vehicles and seventh month of fall for light commercial vehicles this financial year, the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.
While the total sales of commercial vehicles were down 29 per cent at 43,730 units during the month (against 61,403 units in the corresponding month last year), sales of passenger cars fell 8 per cent to 1.43 lakh units from 1.55 lakh units a year ago.
The industry is unlikely to revive at least till the first quarter of the next financial year, said Sugato Sen, Deputy Director-General, SIAM.
The association hopes to see some positive trends only after the next Government is formed after the general elections, as fundamentals are preventing people from buying new vehicles, he told reporters here.
It is for these reasons that vehicles are not being bought in other sectors such as mining, road building, power plants and manufacturing, he said.
India’s economy grew 5 per cent in the last fiscal, the slowest pace in a decade. This fiscal, it expanded 4.4 and 4.8 per cent in the first two quarters.
According to analysts, negative consumer sentiments in various industries are keeping buyers away.
While for commercial vehicles, there is under-utilisation by freight companies and no purchase of new trucks by them, the rise in unemployment in various sectors is the reason for the lack of passenger car buyers. And, this trend is expected to continue for at least next five-six months.
“The utilisation of commercial vehicles by these fleet companies has come down to 65-70 per cent because of the overall current scenario in the economy. We don’t see any positive growth for the commercial vehicles in the next few months,” Surjit Arora, auto analyst at Prabhudas Lilladher, told Business Line .
Three-wheelers According to the SIAM report, sales of three-wheelers (both passenger and goods carriers) fell 22 per cent to 40,456 units during the month from 51,656 units a year ago.
However, sales of two-wheelers continued to grow. Scooter sales rose 25 per cent year-on-year to 3.05 lakh units (2.44 lakh units).
Motorcycle sales grew around two per cent to 8.8 lakh units in November from 8.67 lakh units in the corresponding month last year.
Led by a good monsoon and rush during the festival season, the higher sales of two-wheelers led to a 1 per cent increase in total vehicles sold to 15.26 lakh units in November against 15.12 lakh units in November 2012.
ronendrasingh.s@thehindu.co.in