Domestic car sales declined for the second consecutive month in October, falling 2.55 per cent as buying remained subdued during the festival season, which usually accounts for 30 per cent of annual sales for automobile firms.
2.55 % drop in OctoberCar sales were 1.59 lakh units last month against 1.63 lakh units in October, 2013, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).
“Festival season has been subdued as compared to last year. The sentiment has become positive, but unless we have some real economic growth kicking in, we may not see automobile sales going up,” SIAM Deputy Director-General told reporters here.
There might be some revival in sales early next year. However, the passenger vehicle segment and passenger cars sales were expected to grow at sub-5 per cent this fiscal, he added.
In August, SIAM had forecast a growth of 5-10 per cent in passenger vehicles and cars for the current financial year.
While car sales had grown in the May-August period this year after a slump of two years, sales declined by 1.03 per cent in September.
Total two-wheeler sales too declined by 3.61 per cent to 14.62 lakh units, mainly due to fall in motorcycle sales. Motorcycle sales declined by 8.73 per cent to 10.09 lakh units last month from 11.06 lakh units a year earlier.
“Motorcycle sales will remain subdued till the end of the year. It follows a pattern. Last year, sales were up in October but fell in November, and this year sales were up last month and fell in October,” Mr. Sen said.
According to SIAM, total scooter sales stood at 3.84 lakh units in October, up 10.89 per cent.
Sales of commercial vehicles dropped by 2.97 per cent to 59,165 units in October. “CV sales have picked up as fleet owners have started getting ready as the sector has started to witness some activity,” Mr. Sen said.
With activities taking place again in sectors such as mining and infrastructure, the segment was witnessing some much needed growth, he added. Total sales of vehicles across categories registered 3.84 per cent decline of 3.84 per cent to 17.87 lakh units during the month under review from 18.59 lakh units in October 2013, SIAM said.
