Auto Industry Registers Positive Growth In April-August 2017: SIAM Report

Auto Industry Registers Positive Growth In April-August 2017: SIAM Report

This is a good step, since these also need promotions. "... Whether this is sustainable or not, we will have to wait and see", Mr. Mathur emphasised.

With regards to the recent cess figures announced during the 21st meeting of the Goods and Services Tax (GST) Council on Saturday, Mathur stated that the taxation on vehicles has been brought back to more or less the same as the pre-GST period, adding that real benefit will come only by way of introducing a more efficient system overall. Commercial vehicles exports stood at 7,292 units declining by nearly 28 percent. The industry produced a total of 11.95 lakh (11,950,356) vehicles between April-August 2017, against 10.91 lakh (10,919,510) vehicles produced during the same period a year ago, registering a total growth of 9.44 per cent.

CV sector moving into growth mode for the long termThe commercial vehicle industry seems to be leaving behind the disruption of implementation of BS IV norms and GST and gradually returning to growth path. All the vehicle segments and sub-segments, other than passenger-carrying M&HCVs and LCVs, are in the black and indicative of a positive movement in the market. The impact on rural markets is slowly wading off.

Passenger vehicle sales grew 14% year on year at 2,94,335 units in August, while two-wheeler sales hit a record 18,91,062 units, beating the previous monthly high of 18,68,952 posted in September 2016, according to data released by industry body Society of Indian Automobile Manufacturers (SIAM) on Monday.

Commercial vehicle sales are expected to maintain the momentum in the coming months with government expenditure in infrastructure projects and roads construction keeping pace.

This comes on the back of a 15% growth in auto sales in July, which was powered by a huge growth in utility vehicle sales. The month August 2017 saw total sales of 2,302,158 units across all segments as against 2,010,802 units in August 2016.

Motorcycle sales last month jumped by 12.93 per cent to 11,35,699 units as against 10,05,654 units in August 2016.

Two Wheelers sales registered a growth at 10.41 percent in April-August 2017 over April-August 2016. "In August, too, sales were good because consumers advanced purchases, fearing an increase in cess", he said.

With the new GST cess, the taxation on mid-sized passenger cars have been nearly restored to the pre-GST levels, while taxes on luxury cars and SUVs have been slightly moderated as compared to the pre-GST rates, it said.

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