Domestic passenger car sales declined by 1.03 per cent to 1,54,882 units in September from year-ago month. After posting four months of consecutive growth, car sales declined as customers postponed purchases during the month on account of festival season beginning in October amid expectation of better purchase offers.
According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales declined to 1,54,882 units in September from 1,56,494 units in September 2013. Motorcycle sales last month climbed 19.34 per cent to 10,56,509 units from 8,85,309 units a year earlier. The total two-wheeler sales in September rose 23.81 per cent to 15,67,351 units . Commercial Vehicles sales have turned positive after 16 months of decline and rose by 8.59 per cent to 56,140 units in September as fleet owners have started buying trucks anticipating improved economic activity. Total sales of vehicles across categories registered an increase of 20.44 per cent to 19,04,007 units in reported month from 15,80,933 units in September 2013.
The SIAM Director General Vishnu Mathur has stated that car sales are expected to grow in October mainly on the back of festival season. However, the probability of interest rate increase by the Reserve Bank of India in the rest of the ongoing financial year, is a challenge for the auto industry. By adding further, V Mathur has said that rural incomes across the country could fall in the remainder of the ongoing financial year, due to poor output from kharif crop which could be the another challenge for the local automobile industry.