Car sales in top gear thanks to good monsoon, lower fuel prices

Tapering demand in rural markets, however, resulted in low demand for two-wheelers which grew by a meager 0.14. (Source: Reuters)

Good monsoon, lower fuel prices and new launches drove up demand for passenger cars last month. Data released on Monday by industry body Society of Indian Automobile Manufacturers (SIAM) show sales of passenger cars rising by a strong 17.47 per cent to 162,022 units in July.

Tapering demand in rural markets, however, resulted in low demand for two-wheelers which grew by a meager 0.14 per cent.

Though traction in urban centres boosted sales of scooters which grew by 15.36 per cent to 432,262 units, sales of motorcycles declined by 6.36 per cent to 808,332 units dragging down the overall growth in the segment (motorcycles, scooters, mopeds) to 0.14 per cent. SIAM expects rural sales to improve in the second half of the year.