The Indian auto industry for the third consecutive month this financial year has posted a massive growth of 25.25% in the domestic market with vehicle sales across all categories from scooters to heavy commercial vehicles showcasing tremendous growth. However, this growth comes on the backdrop of a lower base last year which saw a slump in vehicle sales in anticipation of Goods and Services Tax (GST) and for the shift to BS-IV (Commercial vehicles & two-wheelers). There is a clear positive sentiments in buying new vehicles which has been backed by new product launches.
In the first quarter of the ongoing financial in the period between April - June 2018, the Indian auto industry saw a total sales of 69,62,612 units at a growth of 18.01% in the domestic market. The industry had sold 58,82,912 units in the first quarter of last financial year.
Car sales in India:
The total sales of passenger vehicles in India that comprises of Cars, UVs and vans stood at 8,73,501 units at a growth of 19.91% growth. Car sales stood contributed to to over 5.83 lakh units, UV sales stood at 2.34 lakh units and Van sales recorded 55,078 units. Maruti Suzuki India dominated the car sales in India by selling over 4.58 lakh units in India in the first quarter. The growth in the car sales comes as GDP growth revives and above average monsoon along with increase ing government MSP will boost the rural economy.
PV segment is expected to continue to grow with the launch of new models coming in and the shift from large cars to SUVs will also help in the growth of overall passenger vehicles in India. Interesting, sales of Passenger Vehicles in the month of June recorded the best ever growth in sales in almost 8 years.
Two-wheeler sales in India:
Two-wheeler sales in India stood at 56,77,343 units in India in the first quarter. Bike sales grew by 19.47% over a lower base in the last quarter and reports a sales number of 36.51 lakh units. Scooter sales in India in the April-June period reported double-digit growth and slight decline in sales in the month of May 2018 has been overturned. Over 18 lakh scooters were sold in India. Society of Indian Automobiles Manufacturers Association (SIAM) says that strong rural sentiments, better monsoon and rise in spendable income has helped the scooter sales in India that saw over 18.18 lakh units sales at over 10% growth.
Commercial Vehicle sales in India:
Commercial Vehicle (CV) manufacturers in India are riding high with strong performance this financial year. BSIV, GST woes seems to be fading away as the industry recorded over 51% growth by seeing 2.30 lakh CVs in India as against 1.51 lakh units sold last year. Sales of Light Commercial vehicles (LCVs) and Medium-Heavy Commercial Vehicles (M&HCV) sales stood at 1.41 lakh and 89,027 units respectively. With elections scheduled in 2019, there will be a rush to complete many infrastructure projects that is expected to improve the CV sales in India.
Car exports from India:
Passenger vehicle exports from India has declined by 7.37% in India by exporting a total of 1.67 lakh units as against 1.80 lakh units exported in the April-June 2017 period. Top car exporters from India like Hyundai Motor India is running full manufacturing capacity and is currently focussed to cater to the rising domestic demand. Two-wheeler and commercial exports from the country grew by 30% and 41% respectively. Over 8.59 lakh bikes and scooters were exported from India and 24,393 units. Exports to Bangladesh, Sri Lanka continues to be strong from India.
The rise in material and input costs is likely to force automakers to increase vehicle prices in India and SIAM further expects a good second quarter and healthy festive season. All segments including car sales is expected to post double digit growth going forward.