Auto sales up 11.8%; passenger vehicle up 13.76% in August

Auto sales up 11.8%; passenger vehicle up 13.76% in August

Growth in total automobile sales, which include commercial vehicles, passenger vehicles, two and three wheelers, inched 1.5 percentage points from the month of July to 13.5 per cent in August, year-on-year (y-o-y). Vehicle sales grew by 12 per cent and vans by 11 per cent, according to Society of Indian Automobile Manufacturers.

The passenger vehicle (PV) segment, which was the most affected by the additional GST cess, posted growth of 13.76 percent with sales of 294,335 units (August 2016: 258,737), marginally down on July 2017 numbers of 298,997 units.

With regards to the sales figures from the month of August, Mathur stated that the segment has witnessed a positive overall growth of approximately 14.5 percent. The GST led to lower prices for most of the passenger vehicles, but bigger cars and SUVs are set to become more expensive after the government on Saturday increased a cess on such vehicles by as much as 7%.

CHENNAI:Apex auto industry body SIAM on Monday expressed hopes that the announced cess rates will remain stable going forward, even as it appreciated the GST Council's move to restrain the quantum of cess hikes for large vehicles. Market leader Maruti Suzuki India recorded a 26% rise, while second-ranked Hyundai Motor posted a 9% increase.

Commercial vehicle sales are expected to maintain the momentum in the coming months with government expenditure in infrastructure projects and roads construction keeping pace. UV sales grew by 19.62% as it sold 78,664 units in August 2017 in comparison to 65,760 units in the same month a year ago. The interest rates are good; the rural market, which contributes 30 percent to total PV sales, is back on track with higher disposable incomes after demonetisation, and consumer sentiments ahead of the festive season is looking good as well. Market leader Hero MotoCorp posted 12.23 per cent increase in its motorcycle sales at 5,83,852 units as against 5,20,226 units in August a year ago.

Vans too posted a growth of 11.30% and sold 16,860 units in comparison with 15,148 units in the same month previous year. Vehicle sales across categories registered a growth of 14.49% to 2,302,158 units from 2,001,802 units in August 2016, it added.

"SIAM feels that the long standing anomaly in the taxation of 10-13 seater vehicles could have been fully corrected and 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 in a statement.

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