Uncertainties with regard to Goods and Services tax pulled down sales of passenger vehicles in June by 11% year on year, the first decline in six months, data released by Society of Indian Automobile Manufacturers on Monday showed.
Uncertainties with regard to Goods and Services tax pulled down sales of passenger vehicles in June by 11% year on year, the first decline in six months, data released by Society of Indian Automobile Manufacturers (Siam) on Monday showed. To avoid transitional loss and expectation by consumers that prices will go down from July with the implementation of GST, manufacturers did not dispatch vehicles to the dealers, which led to the decline across most segments. The decline in sales of passenger vehicles was the steepest in 51 months, since March 2013 when sales fell by 13.01%. Car sales were also down 11.24% to 1,36,895 units – the steepest fall in 49 months, since May 2013, when car sales had fallen by 11.7%. “Rationalisation of stock happened at both dealers and manufacturers during the month. We expect it to be just one month kind of a thing,” Siam director general Vishnu Mathur said. He added that the industry has still not thought of revising the sales target for the fiscal, which it may do only after looking at sales trend for the next few months. Siam has given a outlook of 7-9% growth in the PV segment for the current fiscal.
The April-June period saw utility vehicle sales rise by 7.53%. Similarly, car sales during the period saw an increase of 3.89%. In June, Maruti Suzuki saw its sales grow by just 1% in the domestic PV space at 93,057 units. Rival Hyundai Motor India sold 37,562 units with a decline of 5.64% followed by Mahindra & Mahindra at the third spot with 16,169 units, down 5.27%. Tata Motors’ passenger vehicle sales were down 12.19% at 13,148 units, while Honda Cars sold 12,804 units, up 12.25%.
In the two wheeler segment, sales in June rose 4% to 1,527,049 units. Motorcycle sales rose 2.18% to 964,269 units. Market leader Hero MotoCorp sold 5,37,187 units during the month, up 12.49% compared to the same month last year. Honda Motorcycle and Scooter India (HMSI) sold 1,45,358 units, up 1.92%. Bajaj Auto posted sales of 1,08,109 units, down 35.88%. Scooter sales in June at 4,97,478 units was up 24.02% during the month. Segment leader HMSI posted sales of 2,71,007 units, up 2.12%. TVS Motor posted a growth of 33.99% at 86,296 units. Hero MotoCorp sold 75,482 scooters during the month, up 24.71%.
Sales of commercial vehicles were up 1.44% to 56,890 units in June. Vehicle sales across categories registered an increase of 1.26% to 1,818,829 units from 1,796,172 units in June 2016.