Car sales rise by nearly 5% in May; marginal impact in June sale due to GST: SIAM
Domestic car sales grew by just 5% in May after it had posted a 15% growth in April. Two-wheeler sales however managed to recover posting a double-digit growth in sales during the month.
- 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
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.
SIAM data further showed that commercial vehicle sales had take a hit during the month. Sales of trucks and buses declined by 6.7% during the month as it sales slipped to 53,457 units from 57,089 units sold May last year.
Domestic two-wheeler sales however seen a good recovery during the month post the demonetisation and Bharat Stage (BS) III vehicle ban to post a 11.8% growth during the month.
Two-wheeler sales grew to 16,96,325 units in May 2017 from 15,14,334 units sold during the same month last year.
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.