Passenger vehicle sales in India crossed the three million mark for the first time in 2016-17. According to the data released by the Society of Indian Automobile Manufacturers (SIAM) 3,046,727 units of passenger vehicles (PV) were sold in fiscal 2016-17 compared to 2,789,208 units sold in the previous fiscal, registering a year-on-year (YoY) growth of 9.23 percent, the fastest growth in the last six years.
Within the passenger vehicles, passenger cars, utility vehicles and vans grew 3.85 percent, 29.91 percent and 2.37 percent, respectively, during this period. Utility vehicle sales were at 761,997 units compared to 586,576 units. Passenger car sales increased to 2,102,996 from 2,025,097 units sold a year ago.
The top two PV makers, Maruti Suzuki India (MSI), and Hyundai Motor India, reported record annual sales for the financial year to March 31, 2017, driven by new models and robust demand for existing products.
For the 2016-17 fiscal, MSI posted 10.7 percent growth in domestic sales at 14,44,541 units during the last fiscal compared to 13,05,351 in the previous financial year. Hyundai Motor India sold 5,09,707 units in 2016-17 as against 4,84,324 units in the previous year, up 5.2 per cent. On the back Tiago’s success Tata Motors saw its sales grow 6 percent to 5,42,561 units. It had retailed a total of 5,11,705 vehicles in 2015-16.
The Indian unit of the French carmaker Renault reported a growth of 88.4 per cent selling 1,35,123 units during 2016-17 as against 71,732 units in the previous year.
Commercial Vehicle sales grew 4.16 percent in the financial year 2016-17 to 714232 units compared to 685701 units sold a year ago. LCV segment led the growth at 7.41 percent by selling 411,703 units in FY16-17 compared to 383,307 units a year ago, while M&HC segment remained almost flat by selling 302,529 units in the last financial year compared to 302,397 units sold a year ago.
Three-wheeler sales declined 4.93 percent in the financial year 2016-17 to 511,658 units over 538,208 units sold in the same period last year. Passenger carrier sales declined 8.83 percent and goods carrier sales grew 12.75 percent in April-March 2017 over April-March 2016.
The sale of two wheelers registered a growth at 6.89 percent during April-March 2017 by selling 17,589,511 units over 16,455,851 units sold in April-March 2016. Within the two wheeler segment, scooters, motorcycles and mopeds grew by 11.39 percent, 3.68 percent and 23.02 percent, respectively in April-March 2017 over April-March 2016.
Passenger vehicle exports increased to 758,830 units, recording 16.20 percent year-on-year growth. India is fast developing as a hub for small car manufacturing and exports. Hyundai is the largest car exporter from India.
Hyundai Motor India remained the county’s largest passenger vehicles exporter at 167,120 units followed by Ford India which gained two spots from fourth position in FY 17 by exporting 158,469 units, pushing Maruti Suzuki India to the third place.
Hyundai Motor India currently exports the models like Eon, Grand i10, Xcent, Elite i20, i20 Active hatchbacks and the Creta SUV.
Exports of three-wheelers and two-wheelers declined 32.77 percent and 5.78 percent, respectively, in FY16-17 over April-March 2016.
The commercial vehicle exports in FY17 were at 108,271 units compared to 101,689 units shipped a year ago. LCVs were the prime contributors at 64,552 units compared to 43,719 units sold overseas a year ago. Tata Motors continued its dominance as the largest exporter, shipping 59,819 units in FY17 compared to 53,704 units a year ago recording a growth of 11.39 percent.
Ashok Leyland which largely exports its M&HCVs despatched 11,802 units during 2016-17, down 9.47 percent as against 13,037 units a year ago.
According to SIAM, passenger vehicle domestic sales are likely to grow between seven percent and nine percent, and of three-wheelers four to six percent in FY17-18. Two-wheeler domestic sales are expected to grow in the range of 9-11 percent. Scooters will continue do better than motorcycles segment. Commercial vehicle segment is likely to grow 4-6 percent in the next financial year