Record Breaking Sale of Bikes and Cars in India Is Upholding the Growth of Indian Automobile Market

Posted on: Oct-2017 | Automobile

In the first five months of this financial year, more than 10 Million vehicles were sold in the domestic market, with a large share of two-wheelers and cars. With the festive season, good monsoon, and improved rural demand, there is hope for more sales of vehicles in the coming months.

According to the figures released by Society of Indian Automobile Manufacturers (SIAM) of automobile manufacturing companies, in the first five months of the current financial year, total domestic sales of vehicles were up 9.26% to 1,02,61,109 vehicles.

The biggest part of this sale was contributed by cars, SUVs, and two-wheelers. According to SIAM, in all these five months, 13, 20,990 cars, SUVs, and vans were sold in the domestic market. It recorded 8.67% increase over the same period last year. It includes 8, 85,897 cars and 3, 55,636 utility vehicles.

The dominating segment in the overall sales was attributed to two-wheeler. Their sales increased to 10.41% in April–August 2017 to 84, 66,284 units. However, domestic sales of commercial vehicles declined by 13.60% to 97,599 units. Sales of light commercial vehicles, however, went up by 1.58% to 2, 76,147 units, while tricycles witnessed a drop of 16.26% to 1, 97,688 units.

SIAM, Director General, Vishnu Mathur said that since the suspicion about GST rates has come to an end, the perception of customers in the rural areas is getting stronger, the monsoon is also doing well overall, and in the coming months the vehicle sales will be better and better.

As far as vehicle sales are concerned in August, the domestic sales of cars increased by 13.76% in August to 2, 94,335 vehicles. During the month, cars’ sales went up by 11.80% to 1, 98,811 units on an annual basis, while motorcycles’ sales rose by 12.93% to 11, 35,699 motorcycles.

During this period, sales of two-wheelers increased by 14.69% to 18, 91,062 units compared to the previous year's 16, 48,871 units. Sales of commercial vehicles have also increased 23.22% and in August this year 65,310 vehicles of this category were sold. Sales of all categories of vehicles went up by 14.49% to 23, 02,158 vehicles in August. A total of 20, 01,802 vehicles were sold in August last year.

Considering the overall figures the Indian automobile sector is set to reap loads of returns in this fiscal year.