Passenger vehicle sales touch 3-mn mark first time in 2017

NEWDELHI: Passenger vehicle sales in December rose by 5.2% from a year ago to 239,712 units on higher demand for utility vehicles and the favourable effect of a low year-ago base in the aftermath of demonetisation.

Car sales declined marginally by 0.18% to 158,326 units, but sales of utility vehicles (UVs) increased by 15% to 67,073 units, according to data provided by the Society of Indian Automobile Manufacturers (Siam).

Pointing to a revival in the economy, commercial vehicle sales increased by 52.62% to 82,362 units in December.

Mandatory introduction of airconditioned cabins in trucks from January will lead to price increases, a factor that contributed to higher sales of commercial vehicles in November and December.

“December is as usual not a great month as production plants of some companies are shut for some time. Also postponement of buying to achieve a new year’s registration date happens in the month. We need to look at the January and February data to get a broader picture on the rural market,” said Ashwin Patil, research analyst, LKP Securities.

In 2017, passenger vehicle sales touched the 3 million mark for the first time, rising by 8.8% to 3,229,109 units from the previous year. Sugato Sen, deputy director general of Siam, said demand had shifted to UVs, and too much shouldn’t be made of the decline in car sales.