Two-wheelers drive growth in October, car sales stay in slow lane

November 12, 2013: Offering a reprieve to the Indian automotive industry, overall October 2013 sales posted a growth of 12.56 percent across all vehicle segments in the domestic market while exports grew 9.97 percent, according to the latest SIAM results.

The main growth driver was the two-wheeler segment with an 18 percent growth with scooters leading the way with a growth of 23.89 percent and motorcycles with 18.05 percent. In the domestic market, passenger cars continued to de-grow at 3.88 percent while the UV segment grew 7.01 percent. Van sales fell by 9.83 percent. Other segments continued their downward spiral, only growing in terms of exports, where three-wheelers were down by 10.98 percent especially in the passenger segment during October.

Overall domestic sales during April-October 2013 grew by 3 percent over the same period last year, spearheaded by the growth in two-wheelers. Sales of passenger vehicles fell by 4.62 percent during this period with passenger cars, UVs and vans dropping by 4.50 percent, 2.76 percent and 9.80 percent respectively.

The commercial vehicles segment registered de-growth of 15.97 percent in April-October 2013 compared to the year-ago period. Medium & Heavy Commercial Vehicles (M&HCVs) continue to take the brunt of the slowdown, falling 26.04 percent and LCVs also dipping by 10.36 percent.

Meanwhile, three-wheeler sales dropped by 5.49 percent with passenger carriers and goods carriers declining by 5.56 percent and 5.17 percent respectively.

The two-wheeler segment grew 5.82 percent during April-October 2013, with scooters and motorcycles growing at 17.79 percent and 3.60 percent respectively, while mopeds fell by 10.11 percent.

In terms of exports during the seven-month period under review, overall automotive exports grew by 5.43 percent with only the CV segment being in negative territory with a 14.58 percent drop over the year-ago period (HCVs grew 4.87 percent but LCVs fell sharply by 20.62 percent). Export of passenger vehicles and three-wheelers grew at 13.49 percent and 22.35 percent respectively during April-October 2013.

Indian industry produced a total of 2,087,333 vehicles comprising passenger vehicles, commercial vehicles, three-wheelers and two-wheelers in October 2013 against 1,827,737 in October 2012, recording a growth of 14.20 percent. This growth is mainly on account of the 21.21 rise in production of two-wheelers, clearly pointing to the wave of growth in this segment.