New Delhi: Unfavourable base effect, along with high fuel and interest costs, dented the monthly sales of domestic passenger vehicles in August 2018, data showed on Tuesday.
According to the data furnished by the Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles — cars, utility vehicles and vans — slipped by 2.46 per cent to 2,87,186 units from 2,94,416 units sold in the corresponding period of last year.
The off-take of the sub-segment such as passenger cars dipped by 1.03 per cent during the month under review to 1,96,847 units.
Similarly, utility vehicles’ sales declined in August. The off-take was lower by 7.11 per cent during the month at 73,073 units.
However, sales of vans increased by 2.41 per cent to 17,266 units.
In contrast to passenger vehicles sales the overall commercial vehicles off-take zoomed by 29.56 per cent to 84,668 units in August. The segment is a key indicator of economic activity.
The data pointed out that three-wheelers’ sales accelerated by 22.83 per cent to 63,199 units during the month.
In addition, overall sales of two-wheelers, which include scooters, motorcycles and mopeds, climbed by 2.91 per cent to 1,946,811 units.
As per the data, total sales of the Indian automobile sector rose by 3.43 per cent during August 2018 to 2,381,931 units across segments and categories.
The overall exports of vehicles across categories also edged higher by 23.70 per cent to 411,357 units.
Sridhar V, Partner, Grant Thornton India said: “Commercial truck segment has been performing at a high torque during this month despite the change in the axles policy kicking in mid-July and I would presume it is not only because of the shape of the economy but also a reflection of the infra build.”
“This segment has registered the highest yet for FY 19 and best is probably yet to come. Passenger vehicle segment had a mixed performance; while a few OEMs have shown growth, the largest players have shown a negative growth possibly due a high base in previous year, high interest rates and flood situations, which have had its dampening effect.”
Anupama Arora, Vice President and Sector Head, Corporate Sector ratings, ICRA said: “One-off events in select geographies as well as delayed festive season resulted in muted two wheeler volumes in August 2018….”
[source_without_link]IANS[/source_without_link]