Indian auto industry posts 9% growth in 2014

According to SIAM data released for December 2014, domestic passenger car sales rose 15.26 percent to 152,743 units as compared to 132,524 units in December 2013.

The expiry of the excise duty sops at the end of the month, with no announcement about its extension to the end of the fiscal, is considered one of the biggest contributors to sales numbers while the fact that prices typically go up in the new year may have been another reason.

Sales of utility vehicles were up 7 percent to 43,256 units as compared to 40,175 units in the year-earlier month. Overall passenger vehicle sales were up 12.41 percent to 209,025 units.

Two-wheeler sales, which have been in positive territory since the past couple of years, rose 4.25 percent to 1,212,996 units with scooters contributing 374,159 units (up 24%) and motorcycles 779,908 units (down 3.52 %), according to SIAM data.

Sales of commercial vehicles rose 9.01 per cent to 51,000 units in December. Sales of M&HCVs rose by 58 percent to 21,802 units and this would come as a boost to a sector that has borne the brunt of the economic slowdown. Lower outgo on diesel bills, thanks to bulk buying, and an uptick in fleet replacement have enabled the sector to record a decent increase. LCV sales though continue to see a slowdown, falling 11.56 percent to 29,198 units.

Seen overall, vehicle sales across categories registered an increase of 5.68 percent to 15,12,881 units from 14,31,543 units in December 2013, SIAM has added.

On the ongoing 2014-15 fiscal year front, sales from April-December reveal that the passenger vehicle segment rose 3.67 percent, CVs overall are down 5.65 percent, three-wheelers up 14.10 percent and two-wheelers up 11.04 percent. Overall industry sales are up 9.55 percent for the nine-month period to 14,900,705 units as against 13,601,608 in April-December 2013.

Industry up 8.95% in CY2014
Taking 2014 as a whole, passenger car sales rose by 2.46 percent to 1,851,475 units albeit combined with UVs and vans, sales comprised a flat 0.66 percent growth over 2013. The CV sector overall was down 11.80 percent to 606,232 units last year compared to 687,323 units in 2013. The two-wheeler sector, which has often saved the blushes for the Indian automobile industry over the past year, posted a growth of 11.52 percent, selling 16,013,447 units. Thanks to growing demand, scooters posted a sales increase of 28.89 percent to 4,326,294 units while slowing demand for motorcycles saw them register 6.21 percent growth to 10,913,003 units.

On the export front, sales across all vehicular categories were up 18.40 percent to 35,90,639 units as against 30,32,707 units in 2013. While carmakers shipped a total of 622,428 vehicles abroad (up 4.50%), 85,003 CVs were exported (up 17.75%) as were 407,263 three-wheelers (up 19.96%). Growing demand for Indian two-wheelers saw them post 22.25 percent year-on-year growth at 2,475,945 units.

Overall, the Indian automobile industry notched 18.40 percent export growth at 3,590,639 units despatched overseas.   

With three months to go for this fiscal year, it remains to be seen how the sales graph will move given that OEs have already increased prices for all their models and interest rates continue to be on the higher side. Around the second half of this month, two key launches include the Go+, the first MPV from Nissan’s Datsun brand, and the Tata Bolt, a hatchback that is part of the  HorizonNext growth plan. Tata Motors will hope to capitalise on the good performance of the Zest which has clocked about 3,000 units a month.