Reverse: the holiday season does not increase car sales
NEW DELHI: Despite the traditional rebound in sales during the holiday season, the decline in the national automotive sector continued incessantly in October, with a general sector drop of 12.76 percent.
On Monday, data provided by the Society of Automobile Manufacturers of India (SIAM) showed that total sales of the Indian automobile sector decreased 12.76 percent to 2,176,136 units in October of 2,494,345 units sold during the corresponding month of the previous year.
The data becomes important, as they showed that an expected increase in wholesale sales did not materialize in the later part of the holiday season.
Other reasons, such as low rural demand along with a slowdown in economic activity, have been cited for the decrease.
However, after almost 12 months of decline, passenger car sales became flat. Extraction during the month under review rose 0.28 percent to 285,027 units this October, year after year.
SIAM President Rajan Wadhera told reporters that healthy retail sales of PV have been reported and that the coming months of November to December are expected to be better than the corresponding period last year.
Significantly, the current figures are only wholesale numbers and not retail data.
Wadhera also said that the industry has requested state oil marketing companies to provide fuel according to BS-IV emission standards by February 1 across the country.
Currently, the type of fuel is only available in the Delhi-NCR region.
In terms of passenger car sales, it decreased 6.34 percent to 173,649 units. In September, sales fell 33.4 percent.
But utility vehicle sales grew 22.22 percent to 100,725 units, while the pickup of vans was reduced by 35.08 percent to 10,653 units compared to the same month last year.
Wadhera cited the entry of new players and products in the utility vehicle segment as the core reason for the rise in sales.
On the other hand, the key indicator of economic activity - commercial vehicle - segment sales decreased by 23.31 percent to 66,773 units.
The sale of three-wheelers in September decreased by 3.60 percent to 66,985 units.
In the case of two-wheelers, which include scooters, motorcycles and mopeds, the sale fell 14.43 percent to 1,757,264 units.
However, exports in all categories were 2.72 percent higher at 395,964 units.
The decline in sales has also affected production levels, causing job losses. Domestic passenger car production has fallen 30.22 percent to 162,343 units of 232,649 units.
In addition, commercial vehicle production was reduced by 45.48 percent to 58,957 units, and the production of two-wheeled vehicles was reduced by 26.57 percent to 1,725,462 units.
The mood of the festival, discounts, financial momentum and new presentations have contributed to a seemingly reborn environment in passenger car sales, although the next two months, usually represented by weak sales, will have to be confirmed to confirm the In exchange, Grant Thornton India LLP Partner Sridhar V told IANS.
The decrease rate has slowed down this month, if the annual sales of the last months were observed. Sequential sales have shown a significant improvement in a growth close to 27 percent of passenger cars. This is due more to SUV sales.