Consumer sentiments remained low owing to high-interest rates & rising fuel prices, leading to a muted sales growth during the month
Domestic passenger vehicle sales declined in November, the fourth monthly drop since July, as a spike in interest rates and high fuel prices crimped consumer demand.
According to the latest data released by Society of Indian Automobile Manufacturers (Siam), passenger vehicle (PV) sales in November stood at 2,66,000 units against 2,75,440 in the year-ago month, down 3.43%.
PV sales had risen 1.55% in October, snapping three months of consecutive decline. In July, August and September, PV sales had declined by 2.71%, 2.46% and 5.61%, respectively.
“We have been witnessing flat growth in PV sales for the last couple of months due to factors like high interest rates and rising fuel prices. However, fuel prices have started to come down and we expect to see its positive impact going ahead,” Siam director general Vishnu Mathur told reporters on Monday.
In November, particularly, consumer sentiments remained low owing to all these factors leading to a muted sales growth during the month, he added. Mathur, however, said overall, sales across various segments during the month remained robust.
Vehicle sales across categories registered an increase of 5.03% to 20,38,015 units from 19,40,462 units in November 2017.
“Even during the April-November period of this fiscal, PVs have grown by 5%, commercial vehicles by over 31%, three-wheelers by over 21% and two-wheelers by over 10%. So, the overall sales growth during the period has been around 11%,” Mathur said.
He, however, admitted that it would be difficult to meet growth of 7-8% (earlier forecast) in the PV segment with just three months remaining in the current fiscal.