Car sales dip 2.55% in Oct as festive purchases remain subdued

Car sales dip 2.55% in Oct as festive purchases remain subdued

Car sales in India fell 2.55 per cent in October as purchases remained subdued during the festival season, marking the second consecutive month of decline.

According to the data released by Society of Indian Automobile Manufacturers (SIAM), domestic car sales in October this year stood at 1,59,036 units as compared to 1,63,199 units in the same month of 2013.

"Festival season has been subdued as compared to last year. Also, the sentiment has become positive but unless we have some real economic growth kicking in, we might not see automobile sales going up," SIAM Deputy Director General Sugato Sen told reporters here.

He added that sales would remain subdued for the next two months but may see some revival starting early next year.

"Though we might see some revival in sales early next year, the passenger vehicle segment and passenger cars are expected to grow at sub-5 per cent this fiscal," Sen said.

In August, SIAM had forecast a growth of 5-10 per cent in passenger vehicles and cars for the current financial year.

Car sales in the country grew from May to August this year after a prolonged slump which lasted over two years. The sales, however, declined 1.03 per cent in September.

In October, market leader Maruti Suzuki India posted a growth of 1.95 per cent in domestic passenger car sales at 80,589 units as against 79,040 units in the same month last year.

Rival Hyundai Motor India saw its sales grow by 5.34 per cent to 37,894 units as compared to 35,973 units in the same month last year.

Honda Cars India witnessed a decline of 8.45 per cent in domestic sales of its passenger cars at 10,186 units as against 11,127 units in the year-ago month.

Homegrown auto major Tata Motors' sales were down 12.33 per cent at 9,594 units as against 10,944 units in October 2013, while utility vehicles major Mahindra & Mahindra's sales during the month declined by 13.64 per cent to 19,029 units as against 22,035 units last year.

Motorcycle sales last month declined 8.73 per cent to 10,08,761 units from 11,05,269 units a year earlier, according to SIAM data.

"Motorcycle sales will remain subdued till the end of the year. It follows a pattern. Last year sales were up in October but fell in November and this year sales were up last month and fell in October," Sen said.

Market leader Hero MotoCorp saw its sales dip 11.42 per cent to 4,91,190 units as against 5,54,545 units in the same month last year.
Bajaj Auto registered sale of 2,04,281 units as against 2,28,998 units last year, down 10.79 per cent.

Honda Motorcycle and Scooter India (HMSI) witnessed a decline of 5.73 per cent at 1,62,204 units as against 1,72,075 units in October 2103.

According to SIAM, the total scooter sales in October 2014 stood at 3,83,885 units as compared to 3,46,171 units in the same month last year, up 10.89 per cent.

Scooter market leader Honda Motorcycle and Scooter India posted a growth of 6.05 per cent at 1,99,466 units as against 1,88,075 units in the year-ago month.
Hero MotoCorp scooter sales were flat at 59,498 units in October as against 59,579 units last year.

Chennai-based TVS Motor Co saw its scooter sales zoom by 64.75 per cent to 67,248 units as against 40,818 units last year.

The total two-wheeler sales in October declined 3.61 per cent to 14,61,712 units.
Sales of commercial vehicles declined 2.97 per cent to 59,165 units in October, SIAM said.
"CV sales have picked up as fleet owners have started getting ready as the sector has started to witness some activity," Sen said.

He added that with activities taking place again in sectors like mining and infrastructure, the segment is witnessing some much needed growth.

Total sales of vehicles across categories registered a decline of 3.84 per cent to 17,87,146 units in October from 18,58,594 units in October 2013, SIAM said.

Comments (+)