Car sales finally ended in positive territory during FY15 after two consecutive years of decline basically fuelled by excise duty cuts (till December), new launches, reduced fuel prices and high levels of discounting, reports fe Bureau in Mumbai.
In the two-wheeler segment, overall sales grew 8.1% on the back of robust demand for scooters while motorcycles sales remained under pressure and in fact declined during the last quarter due to weak rural demand.
In the commercial vehicle segment, sales of medium and heavy commercial vehicles grew on the back of pent-up demand, anticipated increase in infrastructure spending, replacement of ageing inefficient fleet and recently lifted mining bans; however sales of light commercial vehicles continued to decline.
The outlook for the current fiscal looks bright with passenger vehicle sales clocking a growth of 5-8% building on the momentum of low interest rates, fuel prices and new launches. In the CV segment, with the government’s infrastructural push and implementation of GST, the market is likely to witness double-digit growth, driven by a continued upsurge in the M&HCV sub-segment and a turnaround in LCV demand.
In the two-wheeler segment, motorcycle sales are likely to be flat due to reduced rural demand. However, continued strong growth in scooter sales is likely to offset that decline and the overall two-wheeler market may end the year with single-digit sales growth levels similar to FY15.