New Delhi, Oct 9 (AGENCIES): The Society of Indian Automobile Manufacturers (SIAM) on Monday said that the overall growth of the automobile sector “looks conducive” as the industry has “more or less” overcome certain disruptions like demonetisation and the implementation of GST.
“At the moment the growth is looking good… September of course is consequent to festive season and has good numbers also October will have two major festivals – Dhanteras and Diwali… so sales look good ” said vice president, SIAM, Rajan Wadhera. “Overall the environment looks conducive for growth.”
As per the data released by the SIAM sales of domestic passenger cars increased by 6.86 per cent in September to 208656 units from 195259 units sold in the corresponding period of 2016. The off-take of other sub-segments such as utility vehicles zoomed up by 26.21 per cent during the month to 84 374 units while sales of vans rose by 3.72 per cent to 16 925 units. The industry data revealed that the overall domestic passenger vehicle sales edged higher by 11.32 per cent in September to 309955 units from 278428 units sold during the corresponding period in 2016. Similarly commercial vehicles sales recorded healthy growth last month. It rose 25.27 per cent to 77 195 units in September. The segment is a key indicator of economic activity.
The three-wheeler segment s off-take increased by 19.08 per cent to 61 860 units during the month under review. Besides three-wheelers the overall sales of two-wheelers which include scooters motorcycles and mopeds increased by 9.05 per cent to 2,041024 units. Exports across categories increased by 12.73 per cent to 354049 units during last month. In addition the industry data showed that the Indian automobile sector s overall sales rose by 10 per cent in September 2017 – with total sales at 2,490034 units across segments and categories. In its forecast for 2017-18 SIAM said that positive factors such as increased demand due to festive season and implementation of the seventh pay commission in a few states will help boost growth.
However it said that an expected increase in cost of ownership by 3-5 per cent in 2017-18 as a result of increasing fuel costs and insurance expenses will put pressure on demand. It further stated that a slowdown in GDP growth frequent policy changes and increase in commodity prices were other major concerns.
Commenting on SIAM s data Sridhar V Partner Grant Thornton India said: “Auto sector has seen a refreshing growth across all segments and has witnessed highest dispatches primarily because of new introductions during the festival season favourable monsoon and settled down regulatory and tax positions on the pollution and GST enabling customers to loosen the purse strings.” “Overall the second quarter has been a dream run for the sector.”