Improved rural demand after a good monsoon in the agriculture-led Indian economy has driven the robust growth in automotive sales in the country in the first half (H1) of fiscal 2016-17.
According to the monthly data released by the Society of India Automobiles Manufacturers (SIAM), the domestic auto sales grew 16.33 percent during April-September 2016 to 1,16,52,160 units compared to the same period a year ago.
Two-wheelers were the growth driver followed by passenger vehicle segment, which grew by 17.47 percent and 12.34 percent, respectively, in H1 of FY17. In the first half of the 2016-17 fiscal, 14,94,039 units of passenger vehicles were sold compared to 13,29,874 units in the same period a year ago, with highest growth of 40.24 percent coming from utility vehicles.
While overall commercial vehicle segment has shown a minor growth of 5.9 percent, the medium and heavy commercial vehicle (M&HCV) segment, which largely depends on national economic growth, has reported a decline of 1.19 percent in the first half of the current financial year to 1,37,664 units, compared to 1,39,325 units sold in the same period a year ago.
The domestic sales of automobiles grew 20.16 percent to 2,260,992 units in September compared to 1,881,643 units of automobiles sold in the same month last year. However, exports declined 8.39 percent, SIAM said in the monthly report.
Domestic sale of passenger vehicles grew 19.92 percent in September to 278,428 units as against 232,170 units in the same month last year. This is the 15th consecutive month of domestic sale growth of passenger vehicles. Utility vehicle sales improved 37.93 percent. Passenger cars grew 15.14 percent followed by vans at 15.62 percent.
Two-wheeler sales moved up 21.59 percent in September this year to 1,868,993 units compared to 1,537,104 units sold in the same month a year ago, mainly owing to a better than normal monsoons and the substantial pay hike for the Central government employees. Strong demand for scooters and mopeds continued to pull the market at a percentage growth of 30.60 percent and 43.71 percent, respectively. Motorcycles grew 16.33 percent.
In September this year, commercial vehicle sales declined 1.95 percent to 61,621 units compared to 62,845 units sold in the same month a year ago. Medium and heavy commercial vehicles (M&HCV) sales declined 20.61 percent in September 2016 to 24,748 units compared to 31,174 units in last September.
Light commercial vehicle sales grew 16.43 percent in the same month mainly driven by increase in demand for goods carriers. A total of 36,873 units were sold in September 2016 as compared to 31,671 in September 2015.
Sales of three-wheelers recorded a growth of 4.90 percent in September to 51,950 units compared to 49,524 units sold in the same month a year ago. Like LCV, the growth in three-wheeler segment has also been mainly driven by goods carriers, which recorded a 23.57 percent hike in sales in September this year compared to same month last year. The passenger carrier segment witnessed a muted growth of 1.45 percent in the same period.
Overall Sales In H1
Sale of Passenger Vehicles grew 12.34 percent in April-September 2016 over the same period last year. Within the passenger vehicles, passenger cars, utility vehicles and vans grew 5.11 percent, 40.24 percent and 8.12 percent, respectively, during April-September 2016 over the same period last year.
The overall commercial vehicles segment registered a growth of 7.97 percent in April-September 2016 as compared to the same period last year. Medium and heavy commercial vehicles (M&HCVs) registered a sales fall of 1.19 percent, but light commercial vehicle sales grew 11.69 percent during the period under analysis.
Three-wheeler sales grew 13.39 percent in April- September 2016 over the same period last year. Passenger and goods carrier sales grew 12.40 percent and 18.15 percent, respectively, in April-September 2016 over April-September 2015.
Two-wheeler sales registered a growth at 17.47 percent during April-September 2016 over April–September 2015. Within the two-wheelers segment, scooters, motorcycles and mopeds grew 26.94 percent, 12.65 percent and 26.32 percent, respectively in April-September 2016 over April-September 2015.
The automotive industry produced 13,421,500 vehicles including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles in April-September 2016 as against 11,992,184 in April-September 2015, registering a growth of 11.92 percent.
In April-September 2016, overall automotive exports declined 10.68 percent. While passenger vehicles and commercial vehicles exports registered a growth of 15.38 percent and 10.24 percent, respectively, exports of three-wheelers and two- wheelers declined 39.32 percent and 12.45 percent, respectively in same period.
In September alone the overall exports witnessed a decline of 8.39 percent, with the Indian automotive industry exporting just 313,996 units of vehicles as compared to 342,770 units in the corresponding month in the previous year.
The export of passenger vehicle from India, witnessed robust growth of 24.06 percent. A total of 70,962 units of passenger vehicle were exported in September 2016 compared to 57,202 units in 2015. Exports of commercial vehicles stood at 9,414 in August this year as against 7,876 last year. Two- wheelers and three-wheelers witnessed a decline of 11.40 percent and 39.35 percent, respectively.