Green shoots of recovery? Car sales finally rise in India, August numbers up 15 percent

New Delhi, September 10, 20131: After eight consecutive months of falling sales, sales for the month of August 2013 rose by 15.37 percent over the year-earlier month sales. According to data released by the Society of Indian Automobile Manufacturers, domestic passenger car sales grew by 15.37 percent to 1,33,486 units in August 2013 as compared to 1,15,705 units in August 2012. However, sales of utility vehicles fell 12.6 percent to 39,379 units from 45,062 units in the year-earlier month.

Motorcycle sales last month grew by 3.82 percent to 795,378 units from 766,127 units in August 2012. Total two-wheeler sales in August 2013 grew by 6.68 per cent to 11,28,598 units from 10,57,925 units in August 2012.

Sales of scooters saw an increase of 21 percent to 283,142 units, riding on several new launches as against 233,180 units in the year-earlier month.

However, the scenario continues to be gloomy on the commercial vehicle front. Total sales of commercial vehicles declined by 23.11 percent to 51,334 units from 66,767 units in the year-ago period, SIAM said. Sales of LCV passenger carriers fell by 5.60 percent to 3,539 units from 3,749 units while goods carrier sales fell from 37,921 units to 32,327 units.

Total sale of vehicles across all categories recorded a growth of 4.47 percent to 14,12,512 units in August 2013 as against 13,52,025 units in August 2012.

Is the growth in car sales the first indictor of a positive trend, the green shoots of recovery that OEMs are desperately awaiting? It’s still early days though and the festive season which has just begun will play a big role in the sales numbers to come later this year.