Indian Automobile Industry Witnessed 10% Growth in May 2017

Posted on: Jul-2017 | Automobile

Automobile sector in India witnessed a flourishing growth right from the start of the year. The launch of numerous new variants and new players trying to make their place in the lucrative market are the factors that have resulted in the growth of the automobile market in India.

Focusing on the numbers, in May 2017, the market saw a growth of 10.05% in the domestic segment as the industry managed to sell 2, 035,490 units in all the categories. The total sale of May 2016 was 1,849,542 units, as per SIAM (Society of Indian Automobile Manufacturers).

Segment-wise passenger vehicles that include vans, utility vehicles, and cars were sold at the total of 251,642 units with the growth rate of 8.63%. In 2016, a total of 231,640 units of passenger vehicles were sold, but growing demand for UV fostered the growth rate surged by 18.80%. Coming on to the total number of cars sold in May 2017, the figures stood at 166,630 units with a growth 4.8%.

On the other hand, there has been a decline in the demand for commercial vehicles since last year. In the domestic market, the sale of the M&HCV reduced by 33 % in the previous month. But focusing on the light commercial vehicle sales, it saw a growth of 14.32%, which makes up to 36,741 units in last month.

Emphasizing on the two-wheeler segment, the launch of new models with advanced technologies and ease in finance solution have widely motivated the demand for this segment. In the domestic market, two-wheeler industry witnessed a rise by 11.89%, owing to the implementation of BSIV and launch of modernized motorcycles and scooters.

In total 53,326 units of scooters were sold in previous month against 454,213 units, which make up to 24.02% boost in the sale, if compared to May 2016. On the other hand, Motorcycle sale rose by 7.72%, which totals sale of 1,060,746 units.

The previous month was a real success for the automakers as it not only witnessed an appreciable growth in the domestic market but also prospered by exporting 64,707 units, which fueled the growth by 25.59%.

In addition, the sales numbers are anticipated to grow after the implementation of GST that will be levied from July 1, 2017.