Domestic passenger vehicle sales jump over 11% in November

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New Delhi | Updated: December 12, 2015 4:53:26 AM

However, the domestic automobile industry has raised concern over the low level of rural off-take, which has restricted the growth for the sector.

Riding high on the sale of sports utility vehicles, the auto industry saw a growth of 11.4% in the domestic sale of passenger vehicles during November, data released by the Society of Indian Automobile Manufacturers (Siam) showed. While utility vehicles saw a strong growth of 19.65%, passenger cars grew 10.39%, which was the thirteenth consecutive month of growth for the segment.

However, the domestic automobile industry has raised concern over the low level of rural off-take, which has restricted the growth for the sector.

“We posted some growth during November but rural off take remains pretty low and is pulling us down,” Siam director general Vishnu Mathur said. There is a slow recovery taking place in the automobile market in the country, but it is still very far from the peak that was achieved in March 2012, Mathur said. The domestic passenger car market saw sales of 233,151 units in March 2012. He maintained that the Indian passenger vehicle market is expected to grow around 8-10% for the current financial year.

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For the passenger car segment, the growth in sales came mainly from the new launches like Baleno from Maruti Suzuki and Kwid from Renault. For the utility vehicle space, the strong growth came from the continued high demand for Hyundai Creta as well as the strong volumes being registered by Mahindra’s TUV300.

According to the data released on Friday, Motorcycles continued to reflect the pressure in rural sales with a muted growth of 1.58, which was a second consecutive month of growth after declining sales for many months in a row.

Lack of growth in motorcycle sales is a cause of concern for the industry, Mathur said.

Among commercial vehicles, the medium and heavy commercial vehicles continued strong growth of 24.75%, while light commercial vehicle sales remained flat at year-ago levels.

Production hit by 15% due to Chennai floods  
Domestic auto industry has taken a production hit of around 15% due to unprecedented rains in Tamil Nadu as operations of various automakers, including BMW, Ford and Hyundai, were hit during the period.

“It’s my guess that there would be a production loss of around 10-15% due to Chennai rains as a number of automakers have their plants around the city,” Siam director general Vishnu Mathur said.

Vehicle production would be hit as operations of various auto component manufacturers were also hit during the period due to heavy rains, he added.

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