Car sales decline in January after 14 months of growth

After reporting growth for the last consecutive 14 months, the Indian passenger car industry reported a dip in sales in the first month of 2016.

According to data released by the Society of Indian Automotive Manufacturers (SIAM) today, the passenger car sales in January fell 0.72% Y-o-Y to 168,303 units. This is the first decline since October 2014, when car sales fell 2.55% to 159,036 units. The weak show in January could be attributed to the delay in purchasing decisions as buyers eagerly awaited new launches at the Auto Expo 2016. In contrast, car sales in January 2015 were higher at 169,527 units, despite the government’s decision to rollback excise duty benefits.

Nevertheless, the overall passenger vehicle sales remained positive at 232,016 units (+0.61%), as utility vehicles and vans saved the blushes. UV sales grew 3.44% to 50,122 units while van sales increased 7.54% to 13,591 units in the month.

All other industry segments reported sales growth in January. Commercial vehicles, two-wheelers and three wheelers segments posted positive numbers in the month, thus resulting in a 3.03% rise in total automotive sales to over 17 lakh units.

Commercial vehicles continued on a good run, with M&HCVs leading the growth. The segment saw 17.53% rise in sales at 61,683 units, with M&HCVs clocking a 33.56% rise to 28,533 units. LCV sales also grew in the month to 33,150 units (+6.53%).

The two-wheeler segment also saw a marginal 2.63% growth to 13.62 lakh units. The big surprise this month came from the motorcycle segment, which finally arrested the decline trend seen in the past and clocked a flattish 0.44% growth to 872,325 units. Scooters continued to chart growth in the Indian market with sales of 436,707 units (+7.85%) in January.

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