Passenger vehicle sales increased for the 14th consecutive month in August, driven by new launches, a favourable monsoon and the pay hike to government staff, prompting the industry body to boost its market growth projection for the financial year to 10-12%.
Automakers dispatched 2,58,722 cars, utility vehicles and vans to showrooms in the past month. These companies report monthly wholesale numbers, but do not usually reveal retail figures.
The industry body expects the sales trend to pick up further momentum, with the upcoming festival season to be the strongest in several years.
The good performance and improved consumer sentiment have given SIAM confidence to increase its sales forecast for the year through March 2017. “Originally , we had estimated the growth in the passenger vehicle segment to be around 11-13% which was later revised to 6-8%. Looking at what is happening and after speaking to our members, it is now felt that the growth will be higher. We should be hitting around 10-12%,“ said Deputy Director-General Sugato Sen.
Sales of passenger vehicles have increased 10.74% to 1,215,569 since the fiscal year began on April 1. Demand has been driven by new models, especially compact sports utility vehicles such as the Maruti Vitara Brezza and Hyundai Creta.
Sales of two-wheelers also grew at a quick pace in August by 26.32% to 16,48,883 units. While sales of scooters rose 32.92% to 5,67,782 units, those of motorcycles went up by 22.19% to 1,005,666.
Sales of commercial vehicles, however, moderated, growing 1.53% to 52,996 units.