Passenger car sales in April and May 2012 rose 3.10 percent to 331,580 units as against 321,622 units in the year-earlier period, according to SIAM. UV sales grew 51 percent to 79,643 units, up from 52,725 units in April-May 2011. Sales of vans, however, fell by five percent to 36,946 units as against 39,016 units.

In the two-wheeler segment, bike sales rose by six percent to 17,49,236 units as against 16,36,474 units in April-May 2011. Sales of scooters and scooterettes rose by 32.35 percent to 463,109 units as against 349,916 units. Overall, the auto sector grew 10 percent across all categories to record 29,85,417 units as against 27,07,501 units in the year-earlier period.

Sales in the first two months of 2012-13 reflect the impact of the higher excise duty hikes as well as the steepest increase in petrol prices over the last two years. It remains to be seen how sales of passenger cars will be, given that sales of petrol models dipped sharply during May. The slowing in the goods sector is an area of concern given the imminent slowdown in the economy. A buoyant monsoon will, no doubt, improve buyer sentiment and also give a fillip to sales of two-wheelers.