Indian automobile industry is on the rise despite the massive hike in petrol and diesel prices across India. Overall, in the first six months of this financial year between the period April-September 2018, the automobile industry across all sector combined sold a total of 14,155,758 vehicles in the Indian domestic market posting a massive growth of 10.95% as compared to the same period last year. In the first six months of FY 2017-18, the industry had witnessed sales of 12,756,611 units as per data released by Society of Indian Automobile Manufacturers (SIAM).
Getting into specifics, the passenger vehicle industry that comprises of passenger cars, UVs and vans have seen a total sales of 1,744,305 units at a growth of 6.88% this financial year. Sales of cars in India increased by 6.8% by selling over 11.69 lakh units and SUVs drove growth for UVs with a total sales of 4.64 lakh units at a growth of 5.42%. The rising costs of fuel in India have seen a decline in sales for cars and SUVs in India in the month of September and have slowed down the overall growth in the country.
"The slowdown in sales of cars is due to the late arrival of festive season in India. The ratio to PVs to UVs is not very significantly different and sales of van continue to show recovering" says Rajan Wadhera, President, SIAM.
Commercial vehicles continue to have a good run this financial year after seeing a slump in sales for past 2-3 years. The CV industry in India has recorded a massive growth of 37.82% by selling over 4,87,316 units in the period April-September 2018 against 3,53,577 units sold in the same time last year. Medium & Heavy Duty Commercial vehicle sales stood at 1.90 lakh units whereas sales of Light Commercial Vehicles (LCVs) in India recorded over 4.87 lakh units. Rajan further confirmed that the growth in this segment is driven by rural areas.
Two-Wheeler sales in India:
Three-wheeler sales in India stood at over 3.54 lakh units. Overcoming the losses from BS-III to BS-IV shift, the two-wheeler industry has indeed fared well this fiscal. The sales of scooters grew by just under 5% by selling over 37.53 lakh units and motorcycles sales in India grew at whopping 13.18% with a total sales of 73.71 lakh units in the Indian domestic market.
Car Exports from India:
Exports of vehicles from India this year has gone up by 23.34% and the cumulative exports across all segments saw 24,18,368 units being exported to global markets. Exports of cars from India declined by about 3% at 3.49 lakh units. Commercial vehicles exports stood at 52,306 units and over 17.23 lakh units of bikes and scooters exports at 24.18 lakh units.
SIAM says that government's focus on agriculture and infrastructure along with strong rural demand will further boost the sales of cars and two-wheelers in India. Overall, it believes that in the next half of this financial year with the festive sentiments being at all-time high the industry will end the year on a positive note.