PV sales decline by over 11% in June on pre-GST jitters
Press Trust of India, New Delhi, Jul 11 2017, 0:06 IST
The sale of passenger vehicles took a dip just ahead of the GST implementation. file photo for representation.
Passenger vehicle sales fell over 11% in June, the first decline in six months as dealers avoided picking up fresh stocks from companies ahead of GST implementation with a view to avoid transitional loss.
Domestic passenger vehicle sales declined by 11.21% to 1,98,399 units in June, from 2,23,454 units in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Although PV sales have been growing continuously since January, after recovering from demonetisation last year, the decline witnessed in June was the steepest fall in PV sales in 51 months, since March 2013, when sales fell by 13.01%.
Car sales were down 11.24% to 1,36,895 units, against 1,54,237 units in June last year. It was 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 told reporters here.
Dealers were more focused on liquidating stocks rather than picking up fresh units during the month to avoid transitional loss, he added.
During the January-April quarter, PV sales rose by 4.38% to 7,27,658 units. Domestic cars saw an increase of 3.89% during the quarter.
“After demonetisation last year, GST impact was one-of-a -kind of situation. We expect to come out of it soon as people have now come to know about the taxes, rates,” SIAM Deputy Director General Sugato Sen said.
Hit by demonetisation, PV sales had fallen by 1.36% to 2,27,824 units in December 2016, from 2,30,959 units in the year-ago month.
SIAM has given a outlook of 7-9% growth in the PV segment for the current fiscal.
Domestic passenger vehicle sales declined by 11.21% to 1,98,399 units in June, from 2,23,454 units in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Although PV sales have been growing continuously since January, after recovering from demonetisation last year, the decline witnessed in June was the steepest fall in PV sales in 51 months, since March 2013, when sales fell by 13.01%.
Car sales were down 11.24% to 1,36,895 units, against 1,54,237 units in June last year. It was 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 told reporters here.
Dealers were more focused on liquidating stocks rather than picking up fresh units during the month to avoid transitional loss, he added.
During the January-April quarter, PV sales rose by 4.38% to 7,27,658 units. Domestic cars saw an increase of 3.89% during the quarter.
“After demonetisation last year, GST impact was one-of-a -kind of situation. We expect to come out of it soon as people have now come to know about the taxes, rates,” SIAM Deputy Director General Sugato Sen said.
Hit by demonetisation, PV sales had fallen by 1.36% to 2,27,824 units in December 2016, from 2,30,959 units in the year-ago month.
SIAM has given a outlook of 7-9% growth in the PV segment for the current fiscal.
