The automobile industry registered 9.8 per cent growth in November over the year-ago month, driven by festive demand for two-wheelers and passenger vehicles (PVs). While PV sales rose 4.65 per cent to 2,64,898 units, the two-wheeler segment witnessed a strong growth of 13.4 per cent with sales of over 16 lakh units.
Even as November turned out to be a good month, industry insiders feel that sales growth going forward would depend more on the overall economic scenario.
According to data released by Society of Indian Automobile Manufacturers (SIAM), the total vehicle sales across the four segments — PVs, two-wheelers, three-wheelers and quadricycle — for last month stood at 18,88,903 units as against 17,19,874 units in November last year.
Within the PV segment, there was high growth in the utility vehicle segment as their demand rose 17.2 per cent at 1,03,525 units, as against 88,361 units sold in November last year.
Within the two-wheeler segment, the high growth was driven by sales of motorcycles as the industry sold 10.26 lakh units last month as against 8.93 lakh units in November 2019, registering a growth of 14.9 per cent. Sales of scooters rose by 9.3 per cent.
Three-wheeler sales stood at 23,626 units in November compared to 55,778 units in the corresponding month last year and registered a 57.6 per cent decline.
Even as the overall sales number rose over that seen in November 2019, industry insiders feel that going forward the growth would be largely driven by broader economic fundamentals.
Rajesh Menon, director general, SIAM, said, “While the festive season brought back some fervor in specific segments, the overall economic scenario would determine the industry’s performance going forward.”
For the eight month period till November, total sales across the four segments declined by 26 per cent from 1.51 crore units last year to 1.12 more units this year. While PV sales was recorded at 14,55,558 units during April-November and was down by 21.67 per cent, sales of two-wheelers was down by 25.08 per cent at 96.37 lakh units.
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