Passenger car sales in the domestic market grew at its fastest pace in nearly two years spurred by demand for new launches made by auto majors during the festive season last month.
Car sales increased by 23.09% to 172,459 units in October, shows data released by industry body Society of Indian Automobile Manufacturers (SIAM). The growth has, however, come on a low base of 140,105 units recorded in sales during the same period last year.
Sugato Sen, senior director, SIAM said, “The car sales growth rate that we have achieved this October is the highest since January 2011, which was at 25.27 per cent. In terms of volumes, this is the highest since March this year when it was at 2,29,866 units.” Overall, 246,725 passenger vehicles were sold in the domestic market, which is an increase of 33.65% over the 184,611 units sold in the corresponding period last year.
“It is, however, too early to detect any signs of revival as high interest rates and fuel prices, uncertain economic environment and low consumer sentiments still prevail. We have to see if sales continue to pick up in November”, he added.
Industry growth was largely pushed up by Maruti Suzuki which grew by 86.56% to sell 96,002 units in October. After reporting a 14% decline in sales in September this year, Korean auto major Hyundai Motor India Limited (HMIL) too grew volumes by eight% to sell 35,778 units.
Utility vehicles (UV) segment saw a surge in domestic sales at 53,285 units, up 87.74% from last year. The growth was led-by Mahindra & Mahindra with its UV sales in October this year registering 42.81% growth at 30,082 units.
As per SIAM data while motorcycle sales went up by 6.71% to 9,36,122 units from 8,77,270 units in the same month previous year, sales of scooters increased by 32.39% to 279,427 units. "Sales of scooters have been driven mainly from urban demand and we are seeing good traction in the segment. We are also seeing a trend of lot of women buyers," said Vishnu MathuR, director general, SIAM.
The three-wheeler segment saw sales increase 12.58% to 55,241 units in October this year. In the commercial vehicles segment, volumes were also up by 7.59% to 66,722 units in October from 62,013 units in the year-ago period.
Total sale of vehicles across categories registered an increase of 14.81% to 16,53,703 units last month as against 14,40,409 units in October 2011, it added.