LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » Companies News

August sales figures suggest worst is over for automobile industry

While passenger vehicles have registered a 7.5% growth during the April to August in FY18, it is a little lower to 11.3% growth in the same period in FY17.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
August sales figures suggest worst is over for automobile industry
Cars parked in a parking lot. Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Wed, Sep 13, 2017
04:02 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Luxury cars sales likely to drop as IT dept asks dealers for sales numbers since demonetisation Luxury cars sales likely to drop as IT dept asks dealers for sales numbers since demonetisation
India raises GST tax rates for larger cars; pushes back filing deadlines  India raises GST tax rates for larger cars; pushes back filing deadlines 
Why hike in GST cess will have a limited impact on sales of mid, large cars, SUVs Why hike in GST cess will have a limited impact on sales of mid, large cars, SUVs
Car makers may hike prices soon with rise in GST cess from today Car makers may hike prices soon with rise in GST cess from today
Car sales continue robust growth in August: SIAM Car sales continue robust growth in August: SIAM
Key highlights:
  • Sales numbers in August are clearly positive
  • Signal that the automobile industry is almost out of the difficult times
  • Passenger vehicles have registered a 7.5% growth during the April to August in FY18

Automobile companies have seen a good growth in April to August 2017 period despite several road bumps during the period. The sales numbers in August are clearly positive and signal that the automobile industry is almost out of the difficult times, said a CARE Ratings report.

While passenger vehicles have registered a 7.5% growth during the April to August in FY18, it is a little lower to 11.3% growth in the same period in FY17. Commercial vehicles (CV) sales posted a 33.1% decline in sales in the same period in FY18, from an 8.7% growth in FY17.

Two-wheeler and three-wheelers however saw a positive 14.2% growth in April-August FY18 from a 16.7% decline in the same period in FY17.

It said that automobile players started off with strong sales while the growth was restricted by the goods and service tax (GST) implementation and ambiguity with the cess rate to be charged to the different categories of passenger vehicles.

“Commercial vehicle (CV) sales were affected sharply during the period on account of slower manufacturing and economic activities on account of uncertainties surrounding the GST implementation and rates for various products,” said the report.

However, the month of August showed that there was clearly a recovery on track. During August 2017, CV and two and three wheeler sales saw a robust double digit growth.

Passenger vehicle sales recorded positive growth, but this growth was restricted due to the uncertainty revolving around the GST cess rate, said the report.

The CV segment growth during the month has been fueled by infrastructure and construction activity growth during the month.

It added that the rural demand for CV and two-wheelers has also picked up on the back of good monsoon season. Interest rates have been declining making available easy access to financing. These reasons it said have spiked the demand in the market.

“With festive season round the corner, the industry is set to get a further leg up when usually the manufacturers look at good over 20% growth in sales during the period,” said the report.

However, exports continue to struggle as some of the key players have seen a drop in exports during this period.

“Exports though continue to post negative sales with some key exporters facing a drop in volumes on account of rupee appreciation as compared to many other currencies. However, two and three-wheeler exports recorded a strong double-digit growth during August 2017,” said the report.

ALSO READ:
  • Car sales continue robust growth in August: SIAM
  • Car manufacturers post mixed sales in August; CV sales make big recovery
  • Car sales rise by 15% in post-GST month of July: SIAM

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Automobile industryAugust salesPassenger Vehiclescommercial vehiclesCV SalesGSTGST cesstwo-wheelersAuto
RELATED NEWS
Luxury cars sales likely to drop as IT dept asks dealers for sales numbers since demonetisation Luxury cars sales likely to drop as IT dept asks dealers for sales numbers since demonetisation
India raises GST tax rates for larger cars; pushes back filing deadlines  India raises GST tax rates for larger cars; pushes back filing deadlines 
Why hike in GST cess will have a limited impact on sales of mid, large cars, SUVs Why hike in GST cess will have a limited impact on sales of mid, large cars, SUVs
Car makers may hike prices soon with rise in GST cess from today Car makers may hike prices soon with rise in GST cess from today
Car sales continue robust growth in August: SIAM Car sales continue robust growth in August: SIAM

LATEST NEWS

Stove Kraft Limited IPO II Details highlighted by Axis Capital

Bajaj Finance, HUL, Lupin, Nifty, Bank Nifty, VIX and some important Analytics II All Explained

PUBG Mobile India launch: Important notification issued by govt | Check reason for BIG Trouble here

Delhi Metro Services Details on Republic Day 2021: VERY IMPORTANT news about partial regulation of trains for daily commuters; red alert issued

In chat with Anil Singhvi, Sandeep Jain recommends Goldiam International as a stock to buy

FAKE INVOICE FRAUDS - GST officers arrest 258 persons; 8 chartered accountants among arrested

NEET, IIT JEE, NDA, CDS, UPSC exams: Free coaching for students, Abhyudaya scheme, announced by Yogi Adityanath-led UP government

Stove Kraft IPO review: Explained by ICICI Securities

Stock Market Holidays 2021 India: Trading to remain suspended on Sensex, Nifty, others Tomorrow for Republic Day 2021

Vi vs Jio vs Airtel: Check some of the best cheap prepaid recharge plans for you | Full details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved