Vehicle sales grow 24 per cent in November

NEW DELHI: Automobile sales in the domestic market grew by a robust 24.05 per cent year-on-year (y-o-y) during November, but on a low base, with demonetisation affecting sales significantly in November last year. Utility vehicles continued on a high growth track with discounting boosting sales even further, according to the Society of Indian Automobile Manufacturers (Siam). “We had demonetisation last November and so, this growth has been on a low base. Heavy discounting during this period (festive season) has also played a role,” said Vishnu Mathur, director-general, Siam.

Among different segments, overall passenger vehicle sales volumes grew 14.29 per cent in November to 2,75,417 units from 2,40,983 in November last year. In passenger vehicles, car sales remained a bit muted, growing around 4.5 per cent y-o-y, from 1,73,607 units to 1,81,395 units.Utility vehicles continued to drive demand in passenger vehicles, growing at 44.65 per cent. Two-wheelers grew 23.49 per cent.

Commercial vehicles also seem to have cemented their turn-around with total commercial vehicle sales growing a whopping 50.43 per cent during the month. Among CVs, both the heavy and medium segment (MHCV) and the light segment (LCV) registered significant sales growth, growing at 62.63 per cent and 42.87 per cent, respectively. Three-wheelers, both in passenger and goods segments, expanded strongly registering 78.63 per cent sales growth.

The only major segment that saw sales decline significantly was the bus segment, which registered a 23.17 per cent drop in sales volume. “Goods carrier segment and trucks have grown mainly on enhanced spending by the government on infrastructure projects. However, the bus segment remains impacted as government buying remains on a slow pace,” Mathur noted.