Passenger vehicle sales in June witnessed the fastest monthly growth in nearly nine years, rising 37.5% year-on-year on a low base due to de-stocking ahead of GST rollout last year. Domestic PV sales were led by market leader Maruti Suzuki and Tata Motors. The previous fastest growth for this segment came in December 2009, when it grew by almost 50%.
Overall auto sales in June, basically despatches to dealerships, witnessed a robust 25% growth y-o-y, according to the data released by industry body Society of Indian Automobile Manufacturers (SIAM) on Tuesday.
“People postponed purchases last year during this period as they expected prices to come down following the GST roll out. So, the growth we are witnessing this year is coming on a low base of last year,” Siam director-general Vishnu Mathur told reporters.
The two-wheeler segment witnessed close to 22% growth y-o-y with Bajaj Auto leading the pack, registering 86% jump in its monthly sales. For Hero MotoCorp and Honda 2-Wheelers, the sales last month expanded by 12.6% and 28.6%, respectively, compared with June 2017. Two-wheeler sales were aided by a strong rural demand and prediction of a normal monsoon, apart from a low base last year.
The commercial vehicles segment, which was most hit before the GST’s arrival, surged 42% y-o-y due to a favourable base. The CV category had degrown by 9% in June 2017. Experts said the uptick in infrastructure sector have assisted the CV sales. “Strong demand sustaining across both infrastructure and consumption led this growth,” analysts at brokerage firm Nomura said. In terms of quarterly growth, the passenger vehicles section rose by 20% in Q1FY19 compared with Q1FY18. The two-wheeler and CV category increased by 16% and 22%, respectively, q-o-q.