The Hindu Business Line : Vehicle sales increase 15% in October

New Delhi, Nov. 11 Total vehicle sales in October rose 15 per cent over the same period last year as the market continued an upward trend for the ninth month in a row after the low base of the previous year.

According to vehicles sales data released by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales in October were up 33 per cent at 168,043, over the same month last year. This includes passenger car sales, which showed a similar growth of 34 per cent at 132,615 units.

Maruti Suzuki was the market leader logging sales of 63,365 units, a 21.5 per cent increase over the same time in the previous year.

SIAM officials, however, said the high growth is largely due to a low base effect. “It is a positive development but we need to be cautious while viewing these numbers,” said a senior SIAM official.

Sales of commercial vehicles were up 52 per cent at 42,562 units in October. With Tata Motors, Ashok Leyland and Eicher Motors posting high sales in Medium and Heavy trucks, the segment grew 64 per cent during the month.

The good performance of the commercial vehicles segment is being attributed to the increase in spend towards infrastructure related projects, besides the delivery of a large number of buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme. Tata Motors, Ashok Leyland and Volvo-Eicher had between themselves bagged an order of about 12,000 buses under the Government programme.

“Besides the JNNURM order, other reasons for the good performance in vehicle sales include the Government’s stimulus package, which had increased the availability of finance at cheaper rates and the increase in the depreciation rates of commercial vehicles from 33 per cent to 50 per cent,” said the SIAM official.

Two-wheeler sales in October were also up 10.6 per cent at 750,229 units, with Hero Honda retaining its top position at 344,768 units. Sales in the segment, however, fell 10 per cent over the previous month of September owing to labour unrest in the Gurgaon-Manesar auto belt. Production at Honda Motorcycles and Scooters India’s (HMSI) plant in the belt fell by 33 per cent in the month.

In the three-wheeler category, sales rose 21 per cent at 39,926 units. This segment was led by Bajaj Auto, with sales of 17,039 units.

SIAM forecasts that the next few months will also show good growth, especially since sales in the last few months of 2008 had been modest. “Even though there will be a growth, at the current rate, I don’t think we will be able to match the upward growth trend as seen in the 2002-07 period,” said the SIAM official.

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