Key highlights:

  • Car sales rise by 4.8% in May
  • Two-wheeler sales growth rises by 11.8%
  • CV sales struggle as sales fall by 6.7% in May

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Car sales in May 2017 registered a 4.8% growth said industry body, the Society of Indian Automobile Manufacturers (SIAM) on Friday. India's domestic car sales grew to 1,66,630 units from 1,58,996 units in the same month a year ago. This was a 12.7% month on month rise in sales.

SIAM's Director General Vishnu Mathur further sees marginal impact on June sales before the rollout of the goods and service tax (GST). Mathur said this while speaking at a press briefing at New Delhi, according to a Bloomberg report.

The domestic passenger vehicle sales increased by 8.6% as it sales grew to 2,51,642 units in May 2017 from 2,31,640 units sold in the corresponding month last year.

India’s passenger vehicle sales rose by 15% to 277,602 units a month back in April. This shows a slowdown in passenger vehicle growth during the month of May.

ALSO READ: Mini, compact cars drive 15% growth in sales in April: SIAM

Two-wheeler sales recovery seen in May with several firms posting double-digit growth

A month ago in April car sales in saw a good growth of 14.68% as passenger vehicle sales grew to 2,77,602 units during the month this year from 2,42,060 units sold in April 2016. This SIAM said was driven by the mini and compact car segments.

Buoyed by good economic activity picking up after demonetisation and hopes of a normal monsoon had resulted in the high growth in car sales.

CV sales continue to struggle post the BS-III ban as pre-buying has lead to a slowdown in purchase of BS-IV vehicles which are higher priced.