Pre-GST effect: PV sales fall by over 11% in June

The decline in sales of passenger vehicles was the steepest in 51 months, since March 2013 when sales fell by 13.01 per cent.

By: ENS Economic Bureau | Mumbai | Published:July 11, 2017 2:25 am
GST, Goods and sevices tax Photo for representational purpose

Uncertainties with regard to the goods and services tax (GST) pulled down sales of passenger vehicles in June by 11 per cent year on year, the first decline in six months, data released by Society of Indian Automobile Manufacturers (Siam) on Monday showed. To avoid transitional loss and expectation by consumers that prices will go down from July with the implementation of GST, manufacturers did not dispatch vehicles to the dealers, which led to the decline across most segments. The decline in sales of passenger vehicles was the steepest in 51 months, since March 2013 when sales fell by 13.01 per cent. Car sales were also down 11.24 per cent to 1,36,895 units – the steepest fall in 49 months, since May 2013, when car sales had fallen by 11.7 per cent.

“Rationalisation of stock happened at both dealers and manufacturers during the month. We expect it to be just one month kind of a thing,” Siam director general Vishnu Mathur said. He added that the industry has still not thought of revising the sales target for the fiscal, which it may do only after looking at sales trend for the next few months. Siam has given a outlook of 7-9 per cent growth in the PV segment for the current fiscal. The April-June period saw utility vehicle sales rise by 7.53 per cent. Similarly, car sales during the period saw an increase of 3.89 per cent. In June, Maruti Suzuki saw its sales grow by just 1 per cent in the domestic PV space at 93,057 units. Hyundai sold 37,562 units with a decline of 5.64 per cent followed by Mahindra & Mahindra at the third spot with 16,169 units, down 5.27 per cent. Tata Motors’ passenger vehicle sales were down 12.19 per cent at 13,148 units, while Honda Cars sold 12,804 units, up 12.25 per cent.

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