Domestic passenger vehicle sales drop 6.2 pc in January

Domestic passenger vehicle sales declined 6.2 per cent in January as vehicle demand continued to be stressed by rising cost of ownership and slower GDP growth, automobile industry body SIAM said on Monday.

Passenger vehicle sales last month stood at 2,62,714 units against 2,80,091 units in the year-ago month, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Car sales last month were also down 8.1 per cent at 1,64,793 units compared with 1,79,324 units in the January last year.

Vehicle sales across categories registered a decline of 13.83per cent to17,39,975units from20,19,253units in January 2019, SIAM said.

"Sales of vehicles continue to be stressed due to rising cost of vehicle ownership and slower growth in GDP," SIAM President Rajan Wadhera said.

Vehicle prices have gone up as manufacturers gear up for the transition to stricter emission norm BS-VI from BS-IV beginning April 1. Besides, many companies had increased prices in January citing rising input costs.

Wadhera further said, "We are hopeful that the recent announcements by the government on infrastructure and rural economy would support growth of vehicle sales going forward, especially in commercial vehicles and two-wheeler segment."