SUVs drive car sales to 6-yr high in FY17

Sales of passenger vehicles (PV) in India during 2016-17 grew at its fastest pace in six years and may grow at a healthy pace in the current fiscal, propped up by demand for sports utility vehicles, according to data released by the Society of Indian Automobile Manufacturers (Siam) on Tuesday.

PV sales grew 9.23% to 3.04 million units during the year. In 2010-11, the segment had grown 28.2% in 2010-11. Utility vehicle sales grew 30% to 7.61 lakh units, Siam data showed. Passenger car sales during the year grew 3.85% to 1.90 lakh units.

PV sales crossed the 3-million mark for the first time in India. India also registered highest ever sales for two-wheelers as well it exported maximum number of passenger vehicles till date.

Yet, industry association issued a conservative forecast and said that it expects the PV industry to grow between 7% and 9% in 2017-18 as it expects cost of ownership to rise up to 6% during the year due to rising raw material costs and that coupled with rising fuel prices and fewer SUV model launches will be deterrents for growth.

During the year, sales of twowheelers grew 6.89% to 17.58 million units. Commercial vehicles sales grew 4.16% to 7.14 lakh units but three wheeler sales declined 4.93% to 511, 658 units.