New Delhi: The Indian automotive sector has catapulted a robust double-digit overall growth of 24.05 percent during the month of November 2017 driven by a strong performance by almost all vehicle segments, according to the latest sales figures of industry body SIAM.
Last November resonated with lower sales due to demonetization blues that led to less liquidity in the market tightening purse strings of consumers and reducing footfalls in dealer outlets.
November 2017 sales have grown over a low base of the same month last year leading to a boom in sales figures.
A normal monsoon this year that resulted in a good crop has placed more disposable income in the hands of the rural populace. With the rural and small town markets picking up sales pace, OEMs are also making more dispatches to these regions. Production of vehicles has also increased during November 2017 across segments except M&HCVs compared to the previous month of October that marked the festive period and overstocking of inventories. Many of the OEMs plants were shut for a week’s maintenance at this time as well.
Leading the attack from the front is the three-wheeler segment recording a rise in domestic sales of 78.63 percent at 60,131 units, almost double of that reported in the same month last year. Passenger carriers are up by almost 99.50 percent doubling sales at 50,021 units while goods carriers sales have grown at 17.71 percent.
Commercial vehicles are back on the road to recovery, with a step up of 50.43 percent with sales at 68,846 units (45,767 units) with the major chunk of the growth coming from the medium and heavy commercial vehicles, up 62.63 percent at 28459 units (17499 units units).
However passenger carriers have de-grown 23.17 percent while the lion’s share of domestic sales have been spurred by infrastructure development, road and highway projects as well as new projects coming up in smart cities.
Vishnu Mathur, director general of SIAM, said that the decline in passenger carriers in the M&HCV segment is primarily due to orders not materializing for public transport. This is on account of the high Goods and Services Tax at 28 per cent similar to that applicable on passenger cars.
Also Read: Auto industry posts 9.36% growth in April-Nov 2017: SIAM
The Centre recently approved the Bharatmala project worth Rs 7 lakh crore for building roads and highways across an area of 83,000 kms. This is further set to boost growth in the CV sector especially M&HCVs going forward.
During October 2017, sales were down across the entire spectrum of vehicle categories due to excess stocks at dealerships on account of the festive season, due to which overall sales were in the red by 1.79 percent.
The CV segment had grown in single digits at 6.44 percent with M&HCVs scraped through marginally at 0.86 percent with a steeper decline noted in passenger carriers. Three-wheelers while up by 12.81 percent were far lower in growth terms compared to November 2017 sales figures.
Similarly, passenger vehicles are also back on the growth trajectory with an uptick of 14.59 percent at sales of 275417 units ( 240983 units), after de-growing 0.30 percent in October 2017. Utility vehicles once again are leading from the front with a sales uptick of 44.65 percent at 77824 units followed by vans at 19.34 percent while passenger cars are up by a single-digit of 4.49 percent from the earlier de-growth of 5.32 percent recorded in October 2017.
Two-wheelers have also posted a strong double-digit growth of 23.49 percent at 1535277 units (1243246 units) led by scooter sales that have risen by 30.25 percent at 506,267 units with motorcycles nipping at its heels with a rise in sales of 23.25 percent at 959,122 units.
Exports have grown 23.25 percent with the steepest decline witnessed in passenger vehicle exports at 0.66 percent due to fluctuations in demand by importing countries. Other segments have experienced growth, the highest 46.93 percent reported by three-wheelers.