Auto sales at 16-yr low in Dec as note ban takes toll

Light commercial vehicles segment saw a growth of 1.15 per cent

Monthly automobile sales growth rate in India slipped to a 16-year low in December with total vehicle sales declining by 18.66 per cent as demonetisation hits the industry hard.

According to latest Society of Indian Automobile Manufacturers (Siam) data, most of the major segments, including scooters, motorcycles and cars, witnessed record decline December sales as the automobile sector continued to bear the brunt of negative consumer sentiments in the wake of the ban of Rs 500 and Rs 1,000 notes announced in November.

Vehicle sales across categories registered a decline of 18.66 per cent last month at 12,21,929 units, from 15,02,314 units in December 2015, according to Siam.

“This is the highest decline across all categories since December 2000, when there was a drop of 21.81 per cent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation,” Siam Director General Vishnu Mathur told reporters here.

Except for the light commercial vehicles segment, which saw a growth of 1.15 per cent at 31,178 units, all the other categories of the industry saw decline in sales in December, he added.