India’s recovering economy has brought some cheers to the automotive industry that is poised to grow at a faster pace in 2018, as demand expected to stay firm across most segments.
Automobile industry body, the Society of Indian Automobile Manufacturers (SIAM) revised upwards growth estimates for cars, commercial vehicle, three-wheeler and two-wheeler sales in the local market in the ongoing financial year as consumer sentiments lift with waning of effects of demonetization and resolution of glitches stemming from implementation of GST.
According to SIAM passenger vehicle sales of cars and SUV’s are expected to go up by 9% this fiscal, commercial vehicles and two-wheelers are likely to increase by 13% and 12% respectively, on back of recovery across urban and rural retail centers. The bigger chunk of three-wheeler sales, forming a bulk of the market are expected to rise 7% in the period under consideration.
This SIAM forecast comes after a bumper car sale in 2018, says its deputy director general Sugato Sen. “In 2017 for the first time more than 3.2 million passenger vehicles were sold in the domestic market. Last year also saw record sales of 19 million two wheelers”, Sugato Sen.
Other segments posted similar gains. Two-wheeler sales in the period under review increased 8.43% to a peak of 19,176,905 units. Sales of commercial vehicles (trucks & buses) and three-wheelers stood at 789838 units (growth of 12.43%) and at 543928 units (decline of 0.37%) respectively in 2017.
Cumulative vehicle sales across categories rose 8.39% to 23,739,780 units in 2017 as compared with 21,901,703 units in 2016.
Sen elaborated the automobile industry has largely been able to recover from the effects of demonetization of currency in 2016 when Rs 500 and Rs 1000 notes were put out of circulation by the government. “While some members were having some issues with regards to the transition to GST, SIAM expects them to be settled by March,” he added.
In December, passenger vehicle sales rose 5.22% to 239,712 units from 227,823 units in December 2016. Meanwhile, sales of commercial vehicles increased by 52.62% to 82362 units last month. Total two-wheeler sales in December rose 41.45% to 1,287,592 units compared to 910,276 units in the year-ago month. While motorcycle sales went up 40.31% to 788,156 units, scooter sales grew 52.05% to 432429 units. Vehicle sales across categories registered a rise of 36.39% to 1,666,646 units from 1,221,969 units in December 2016.
|
CATEGORY |
FY17 ACTUAL GROWTH (%) |
FY18 INITIAL ESTIMATES (%) |
FY18 FINAL ESTIMATES (%) |
|
Passenger Vehicles |
9.23 |
7-9 |
9 |
|
Commercial Vehicles |
4.16 |
4-6 |
13 |
|
Three-wheelers |
-4.93 |
4-6 |
7 |
|
Two-wheelers |
6.89 |
9-11 |
12 |
Source: Society of Indian Automobile Manufactures (SIAM)
