The sales of passenger vehicles in India that comprises of Cars, UVs and Vans have declined by 2.71% in the Indian domestic market as the carmakers sold 290,960 units in July 2018 as against 299,066 units sold in the same month last year.
The decline in car sales is due to reflect base effect due to an increase in demand in car sales seen in July 2017 due to implementation Goods and Services Tax (GST) that created a higher base for this year. This was soon followed by implementation of Cess by the GST Council that further increased the buying of cars in India before the prices of the cars were increased due to GST.
Within PVs, car sakes stood at 191,979 units down marginally by 0.45%, UV sales declined by over 8% by selling 79,092 units and Van sales in India stood at 19,889 units.
Commercial Vehicle sales in India continues to be on a growth trajectory with a growth of almost 30% by selling 76,497 last month as compared to 59,001 units. The ongoing axle norms and overloading as allowed by the government will not affect the demand in commercial vehicles. Within CVs, Light Commercial Vehicles (LCVs) saw a sales of 48,198 units and Medium and Heavy Commercial Vehicles (M&HCVs) sales registered a growth of 24.5% with a total sales of 28,299 units.
Two-wheeler sales in India are on the rise and motorcycles sales have dominated the growth this financial year. Overall over 18.17 lakh two-wheelers were sold in July 2018 as against 16.79 lakh units growing at 8.17%. Motorcycles sales stood at 11.50 lakh units and scooter sales at 5.98 lakh units with mopeds growing by 10% at 67,106 units.
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Sugato Sen, Deputy Director, SIAM says that “All the segments are showing signs of recovery and growth especially Commercial Vehicles and three-wheelers. We expect the vehicle sales to grow further, motorcycle sales have bounced back and we expect all these segments and sub-segments to grow at least till 2020 provided other fundamentals' remains unchanged. Good monsoons will further help the buying sentiments in rural markets.”
Overall the industry has made over 1.08 crore vehicles in the April-July 2018 period, Despite the slowdown in the car sales, the cars and SUV sales in India is growing at over 13% this financial year. The automobile industry representational body (SIAM) says that with higher base the growth will no longer be drastic but will be satisfactory.