With Durga Puja failing to attract buyers, car manufacturers are now looking at Diwali to boost sales.

While the two-wheeler category continued its growth trajectory, passenger cars sales fell in September after registering growth for four months in a trot.

The Society of Indian Automobile Manufacturers (SIAM) hopes that October will turn the game around for car makers.

Domestic sales of passenger cars dropped 1.03 per cent to 1,54,882 in September from 1,56,494 units in the year-ago period.

Two-wheeler sales rose 23.81 per cent to 15,67,351 units in September year-on-year.

“We are yet to see the full impact of festival season as it has just begun. We expect car sales to improve in October.

“The expectations are better compared to last year’s festival season when we witnessed drop in growth. At least, this time we have the sentiment going for us,” Vishnu Mathur, Director General, SIAM, said.

For the first six months of the current fiscal (April-September), SIAM data show that domestic sales of passenger vehicles increased 4.25 per cent to 12,52,318 from 12,01,254 in the same period last year.

Three-wheeler sales during the period grew 17.80 per cent but that of commercial vehicles fell 10.14 per cent.

“Commercial vehicle segment continues to be strained, but it is improving,” Mathur added.

The business environment for the auto sector continues to be challenging as inflation is still not under control and vehicle finance rates continue to be high.

The industry’s key concern is that the higher excise duty rates are expected to be reinstated in January.

On exports, Mathur said that though the industry has been adding newer markets, some of the have imposed restrictions and begun levying high import duties, which have affected car exports.

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