Sales of cars, SUVs rise in August

Strong sales growth in August Auto companies make hay in days of cess and rain

Strong sales growth in August Auto companies make hay in days of cess and rain

Sales of cars and SUVs increased 14% in August to 294,335 units, data by the Society of Indian Automobile Manufacturers (SIAM) showed Monday. All segments including passenger vehicles, commercial vehicles, three wheelers and two-wheeler space have reported a robust growth. In August alone, passenger vehicle sales grew by 13.76 per cent with the industry registering a total sale of 2.94 lakh vehicles, against the 2.58 lakh vehicles sold in August 2016. As in July, attribute this growth to the surge in consumer demand for models which have been most affected by the new GST cess, which comes into effect from today. Auto sales grew by 12 per cent and vans by 11 per cent, according to Society of Indian Automobile Manufacturers. While this is still some distance away from the best-ever numbers which the industry had seen in the month of March 2012 (233,151), consumer demand for UVs continues to gain momentum - 78,664 units (+19.62%) compared to sales in August 2016 (65,760 units).

Domestic passenger vehicle sales grew 13.76% to 294,335 units in August from 258,737 units in the same month past year.

According to Vishnu Mathur, director general, SIAM, "The PV numbers could be ascertained to remain sustainable hereon because the basic economies have become right". "The growth in the two-wheeler segment is a reflection of the rural market coming back to normalcy with the impact of demonetisation wearing off", Mathur said. "We hope this demand to continue through the rest of the year". The OEMs will have to work on their prices once again. "The government has proposed a 2-7 percent differential between hybrids and their regular fuel powered counterparts, depending on each vehicle segment, small, midsize and large cars". In July this year, the segment saw the biggest sales for 2017-18 at 86,874 units with 35.5 per cent growth. "Passenger vehicle sales recorded positive growth, but the growth was restricted due to the uncertainty revolving around the cess rate".

SIAM said that it feels that the "long standing anomaly in the taxation of 10-13 seater vehicles could have been fully corrected"."These should have been fixed at a GST rate of 28 per cent without any cess as these are public transport vehicles and not for personal use", it said, adding that this anomaly will have to addressed later.

In the scooters segment, total sales were at 6,73,444 units last month as against 5,67,782 units in August last year, a growth of 18.61 per cent. Segment leader HMSI's scooter sales rose by 17.22 per cent during August at 3,94,288 units as against 3,36,363 units in the year-ago month.

However, passenger carriers sales continued to struggle as it registered a 27.59% decline in sales during the year.

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