Car sales in India witness rise for 14th month in a row, reports 13% growth in December

Car sales in India witness rise for 14th month in a row, reports 13% growth in December
author image Nikhil Puthran
Monday 11 January 2016, 18:01 PM

Car sales in the country have witnessed a rise for 14th straight month. In the month of December last year, car sales in the country surged by about 12.87 per cent as customers were induced by the auto industry into buying new vehicles by offering record discounts. According to the data released by Society of Indian Automobile Manufacturers (SIAM), domestic car sales in December stood at 1,72,671 units compared with 1,52,986 units in December 2014. Overall passenger vehicle sales during the month grew by 10.46 per cent to 2,30,960 units as against 2,09,086 units in the year-ago period.

SIAM Deputy Director General Sugato Sen, further added, "December is always a difficult month for us. But this time, I think the inducement from the car manufacturers in terms of discounts to a large extent has helped in sales growth during the month.” It has turned out to be the best December month ever in terms of passenger car sales, he further said. For the calender year (January to December), car sales grew 9.8 per cent at 20,34,015 units. The overall passenger vehicles grew 7.86 per cent to 27,72,745 units during the year. "With economy improving, sentiments have also improved.

Car sales in India witness rise for 14th month in a row, reports 13% growth in December

Also the reduction in interest rates has helped sale grow to some extent during the year," Sen said. When asked about the sales forecast for passenger vehicles and cars in the remaining part of the fiscal Sen said, "Although we don't give future guidance, but looking at the current situation we expect to grow better than 6-8 per cent. I think we should be crossing 10 per cent." During last month, market leader Maruti Suzuki India posted a growth of 13.48 per cent in its passenger vehicles sales at 1,11,333 units. Its car sales rose 11.62 per cent to 91,043 units during the period.

Rival Hyundai Motor India saw its passenger vehicle sales increase by 28.79 per cent to 41,861 units in December, driven by newly launched SUV Creta. Its passenger car sales jumped 14.4 per cent to 37,101 units during December compared with 32,429 units in the same period of previous year. Honda Cars India's sales stood at 12,122 units as against 12,308 units in the same month last year, down 1.51 per cent, SIAM said. Homegrown Tata Motors' domestic car sales were at 6,900 units compared with 9,956 units in the same month previous year, down 30.69 per cent.

Utility vehicles major Mahindra & Mahindra saw its sales rise 1.33 per cent to 17,310 units as against 17,082 units in December 2014. As per SIAM data, motorcycle sales declined 5.93 per cent to 7,24,807 units last month from 7,70,519 units a year ago. "Motorcycle sales have not done well. Products like bikes and light commercial vehicles which are dependent on small cities, rural areas and semi urban areas have been down. Sentiment hasn't picked up in these areas yet," Sen said.

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