PV sales rise in October after 11 months

According to SIAM, PV sales during the month of October increased by 0.28 per cent to 2,85,027 units, from 2,84,223 units in the year-ago period.
For representational purposes (Photo | Debadatta Mallick, EPS)
For representational purposes (Photo | Debadatta Mallick, EPS)

NEW DELHI: New launches, two major festivals falling in October and steep discounts offered by automakers drove passenger vehicle (PV) sales in India into positive terrain after 11 months of persistent decline, according to the Society of Indian Automobile Manufacturers (SIAM) data released on Monday.

According to SIAM, PV sales during the month of October increased by 0.28 per cent to 2,85,027 units, from 2,84,223 units in the year-ago period.

Segment-wise, utility vehicles registered a 22 per cent rise in sales, as new launches — Kia Seltos, MG Hector, Hyundai Venue and Maruti XL6 remained in demand. Sale of passenger cars was still down 6.3 per cent during the month.

“Sales in the festive season have been better than last year which is a good sign. We wish it continues in November and December as well and help us slowly come out of this slowdown,” SIAM president Rajan Wadhera said, adding the industry expects to see pre-BS-VI buying in January-March 2020.

Retail sale of PVs taken from the government’s VAHAN website, which does not include data from three states and two Union Territories, showed a 13.9 per cent growth at 296,642 units.

While SIAM expressed hope that the positive sentiment would continue in November and December on the back of lower base and discount offered by carmakers, individual manufacturers remain less optimistic.

Maruti Suzuki’s chairman RC Bhargava recently said the auto market is still not out of the woods, and a revival will depend on demand over the next two-three months.

Analysts have also raised concern that new emission norms, which will come in place from April 2020 would impact the demand. Automakers are expected to pass the investment they have made in meeting the BS-VI norms to consumers by increasing prices of vehicles by 10-20 per cent.

While PVs managed to breach the slowdown phase last month, vehicle sales across categories registered a decline of 12.76 per cent last month to 21,76,136 units from 24,94,345 units in October 2018.

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