The Society of Indian Automobile Manufacturers (SIAM), the apex national body representing Indian Automobile Industry and other bodies including the government, has reported that the auto sector begun the new financial year on a positive note, as the industry produced a total 2,118,240 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April 2016, as against 1,909,842 in April 2015, registering a growth of 10.91 percent over the same month last year.
Sales too witnessed double digit growth and the sales of Passenger Vehicles grew by 11.04 percent in April 2016 over the same month last year. The overall Commercial Vehicles segment registered a growth of 17.36 percent in April 2016 as compared to the same month last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered a growth at 21.98 percent and Light Commercial Vehicles grew by 14.01 percent during April 2016 over the same month last year. Three Wheelers sales grew by 36.68 percent in April 2016 over the same month last year. Passenger and Goods Carrier sales grew by 44.69 percent and 7.64 percent respectively in April 2016 over April 2015. Two Wheelers sales registered a growth at 21.23 percent during April 2016 over April 2015.
However, in April 2016, overall automobile exports declined by 15.87 percent. Though, Passenger Vehicles registered a growth of 6.61 percent, Commercial Vehicles, Three Wheelers and Two Wheelers declined by 2.68 percent, 61.86 percent and 10.80 percent respectively in April 2016 over April 2015.
Meanwhile, SIAM also warned that if the government ends up imposing a 30% environment cess on purchase of diesel cars and SUVs as per the recent Supreme Court order, investment in India's auto sector will dry up. It said, no one will invest in India and the country's image as an investment destination will be completely thrown out of gear. SIAM Director General Vishnu Mathur also said that most multinational companies whether they are Japanese, American or Korean, have invested in diesel technology in India, 'Everyone has got diesel portfolio and everyone is watching very closely how India decides to go ahead with its policy”. “If you have a policy and you do not abide by it that means that we are not a destination that can be trusted. Why should anybody invest here? Most investments from companies are frozen right now.”
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