Car sales may grow in double digits this year, SIAM says

Passenger vehicle sales in India rose by 20% in the month of September, Society of Indian Automobile Manufacturers (SIAM) said. Total passenger vehicle sale in the given month stood at 2,78,428 units as against 2,32,170 units.

Car sales in India rose by 25,669 units in the month of September, at 1,95,289 units, it said. Sugato Sen, Deputy Director General, SIAM, said that although car sales may moderate in the fourth quarter, passenger vehicle sales will grow in double digits in the current financial year. He said that the body expects car sales in the current year to grow between 10% to 13%, adding that motorcycles sales, too, will show strong growth this year. 

Moody's, however, differed. In a report daterd October 6, 2016, it said, "In India, we expect (sales) volumes to grow at around 8% in 2016, to just under 3.4 million, and to continue this healthy growth trajectory with unit shipments climbing 6% in 2017." 

Two-wheeler sales, too, rose by 3,31,889 units, at 18,68,993 units in the month of September 2016.

Commercial vehicles, trucks and buses, saw sales decline, at 61,621 units in September 2016 as against 62,845 units of the same period last year.

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Moody's said, "New model launches by domestic and foreign manufacturers, lower fuel costs and ease in financing will support this volume growth. Performance for India’s Tata Motors Ltd. (Ba1 stable) and Mahindra & Mahindra Ltd. (Baa3 stable) should largely mirror this positive sentiment."