The year began on a good note for the auto sector, which saw a 2 per cent rise in overall sales in January even as the industry body, Society of Indian Automobile Manufacturers (SIAM), is confident about achieving 3-5 per cent growth in the current fiscal.

“The 3-5 per cent growth rate is realistic in view of the current economic situation. December sales were an aberration due to the excise duty cut coming into play from January,” said Vishnu Mathur, Director-General, SIAM.

He said the industry would grow in this range in the remaining part of the fiscal. Data released by SIAM on Tuesday said all categories, except for motorcycle sales that were hit by a mixed monsoon season and lesser demand from rural areas, reported growth. Motorcycle sales fell 6 per cent to 8.68 lakh units during January, from 9.22 lakh units a year ago.

However, scooters sales rose 25 per cent and crossed four-lakh units (around 4.05 lakh) during the month, compared with 3.23 lakh units in January 2014.

“Urban demand is shifting toward scooters. Besides, rural income has been impacted by several reasons, including less rainfall. All these factors have impacted motorcycle sales,” Mathur said.

Passenger car sales saw 3 per cent rise to 1.69 lakh units last month against 1.64 lakh units in January 2014. Utility vehicles also grew by 6 per cent to 48,681 units in the month, from 45,797 units a year earlier.

With the improvement in the economy and other sectors such as mining and infrastructure, the medium and heavy vehicle segment saw a 37 per cent rise in January sales at 21,363 units, compared with 15,615 units in January 2014.

The commercial vehicle segment grew by 5 per cent to 52,481 units during the month, against 49,841 units in same month last year.

Overall, there was a growth of around 2 per cent year-on-year during the month, according to the SIAM data.

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