Car sales rise in FY15 after 2 yrs of decline

Car sales in India rose by 4.99 per cent in 2014-15 after falling for two consecutive fiscals, as lower fuel prices and softening of interest rates led to reduction in the overall cost of ownership.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in FY15 stood at 18,76,017 units as compared to 17,86,826 units in the previous fiscal.

In 2013-14, car sales in India had fallen by 4.65 per cent from 18,74,055 units in the previous fiscal. In 2012-13, they had fallen by 6.69 per cent, which was the first decline in a decade.

"During FY15, general sentiment improved in the car industry. Investment cycles restarted and the worries which people were having was greatly diminished," SIAM Director General Vishnu Mathur told reporters in New Delhi.

Besides, interest rates and fuel rates came down during the last fiscal thereby reducing the overall cost of ownership, he added.

In FY15, the total vehicle sales across categories were up 7.22 per cent at 1,97,52,580 units from 1,84,23,223 units in 2013-14 fiscal.

Two-wheeler sales did well during the fiscal, on account of scooters. Total sales were up 8.09 per cent for the 2014-15 fiscal at 1,60,04,581 units, up from 1,48,06,778 units in 2013-14.

Motorcycle sales for the fiscal ended March 31, were up 2.50 per cent to 107,43,549-units from 104,81,115 units in corresponding fiscal.

"Motorcycle sales were impacted due to moderate demand from rural markets, which saw scant rainfall last year. Even now, the rural markets have been impacted by unseasonal rains," Mathur said.

Scooters, however, posted a robust growth of 25.06 per cent during FY15 at 45,05,529 units as compared to 36,02,743 units in 2013-14.

Commercial vehicles, however, continued to reel under a prolonged slump, posting a decline of 2.83 per cent at 6,14,961 units as against 6,32,851 units in the earlier fiscal.

"Sales of heavy trucks have gained traction due to start of various infrastructural activities like mining and construction of roads, while sales of light commercial vehicles have still not picked up," Mathur said.

On the export front, during 2014-15, car shipments fell by 1.66 per cent at 5,42,082 units as against 5,51,218 units in the previous fiscal. Overall auto exports from India grew by 14.89 per cent in FY15 at 35,73,806 units compared to 31,10,584 units in 2013-14.

On the outlook for the car sales in FY16, Mathur said the industry is "hoping for a moderate growth".

SIAM said domestic passenger car sales grew 2.64 per cent to 1,76,011 units in March, from 1,71,491 units in the same month of last year.

However, motorcycle sales last month dipped 5.22 per cent to 8,59,521 units as against 9,06,901 units a year earlier.

Total two-wheeler sales in March declined by 0.84 per cent to 13,23,184 units.

Sales of commercial vehicles were up 2.14 per cent to 65,470 units in March, SIAM said.

Vehicle sales across categories registered a decline of 0.15 per cent to 16,75,432 units from 16,77,890 units in March 2014, it added.

In March, country's largest car maker Maruti Suzuki India saw its domestic sales decline marginally at 85,733 units as against 86,018 units in the same month last year.

Rival Hyundai Motor India's sales grew by 12.95 per cent to 39,325 units as compared to 34,816 units in March last year. Honda Cars India saw its sales grew by 6.53 per cent to 19,547 units as against 18,348 units last year.

Homegrown Tata Motors sales grew by 32.94 per cent to 12,977 units from 9,761 units in the year-ago month.

Utility vehicle major Mahindra & Mahindra saw its sales decline by 9.72 per cent to 20,672 units as against 22,898 units in March last year.

Motorcycle market leader Hero MotoCorp saw its bike sales grow by 4.15 per cent to 4,61,703 units as against 4,43,280 units in the same month last year.

Honda Motorcycle and Scooter India (HMSI) witnessed a decline of 18.27 per cent in its motorcycle sales at 1,45,502 units as against 1,78,035 units in the year-ago month.

Bajaj Auto's sales dropped by 20.72 per cent to 1,34,660 units as against 1,69,869 units in the same month last year.

Scooter market leader HMSI saw its sales grow by 21.79 per cent to 238950 units last month as against 1,96,191 units in March 2014.

Hero MotoCorp's scooter sales declined by 6.03 per cent to 58,720 units as against 62,491 units in March last year.

Chennai-based TVS Motor posted a growth of 11.43 per cent growth at 52,338 units as compared to 46,967 units in the same month last year.