Uptake In Car Sales Driving The Growth Graph Of The Automobile Market

Posted on: Jul-2018 | By: Reports Buzz | Automobile

Society of Indian Automobile Manufacturers said the automobile industry is estimated to grow up to 8–10% in FY18. Sales of passenger and commercial vehicles have risen in November. This has led to the expected increase in car sales by the end of the current financial year. However, a big reason for the growth in November is smoothness in trade and transactions compared to November of last year, which was severely impacted by due to demonetization. Last month, passenger vehicle sales increased by 14.3% and two-wheelers increased by 23.5%.

Growth in the July–September quarter has increased by 6.3% due to good monsoon growth in rural areas and strengthening consumer sentiment. Earlier it had declined in the five quarters. The Society of Indian Automobile Manufacturers (SIAM) said that the automobile industry could grow 8–10% in the current financial year.

SIAM, Deputy Director General, Sugato Sen said, “If 8–10% growth happens then it will be the best in the last six financial years.” In the financial year 2017, the automobile industry grew 6.81%, 3.78% in 2016, 7.06% in 2015, 3.54% Sin 2014 and 2.49% in 2013.

Emphasis on the government's infrastructure has also boosted the sales of commercial vehicle sales. In November, the country's largest car maker Maruti Suzuki's sales increased by 14.3% to 1,44,297 units. Hyundai's sales went up by 10% to 44,008 units.

In the commercial vehicle segment, Tata Motors performed very well in November. Its sales increased 72% to 35,307 units. Two-wheeler sales rose to 15.3 lakh units in November. Scooters' sales increased by 30.25% to 5,06,267 units and motorcycle by 23.35% to 9,59,122 units.

Hero MotoCorp's domestic market sales increased by 25.72% to 5,88,532 units. Sales of Honda Motorcycle and Scooter India (HMSI) increased by 44.32% to 4,32,134 units.

Automobile companies in India present monthly reports of dispatch to their dealership. It usually does not tell the statistics of retail sales.