Festive car sales flop as October registers just 4% rise, drop sequentially
Car sales have just grown by a mere 4.48% in a month were festive demand is expected to push auto sales to higher double digit growth.
Domestic passengers vehicle sales in India rose by 4.48% in October 2016 as against the same month of last year confirming the softness in the automobile sector.
Moreover, sequentially, domestic car sales dropped by 0.1%, Society of Automobile manufacturers (SIAM) data shows.
Automobile sector has been expecting brisk sales during festive season on the back of good monsoon and 7th Pay Commission bounty.
Also read: Car sales flopped during peak festive period in October?
While passenger cars saw only miniscule rise in growth of 0.45%, vans posted a decline 7.67% in October. The utility vehicle (UV) segment was the only one to rescue the festive sales of automobile companies as it posted 21.37% rise during the month.
Passenger cars grew to 1,95,036 units in October this year from 1,94,158 units in the same month last year. While vans declined 15,097 units this month from 16,351 units in the corresponding month last year.
Also read: Here's why India's automobile sector saw poor sales this October
Even the two-wheeler segment saw poor sales during the same period. Total sales of two-wheelers in the country grew by 8.72%. Scooter and motorcycle sales also saw single digit growth of 8.24% and 7.37%, respectively in October.
Similarly, other segments such as commercial vehicles, light commercial vehicles (LCVs) and three wheelers did not see much growth during the period. While CV sales grew by 16.9% LCVs grew by 8.82% and three-wheelers by 4.35%.
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