Domestic passenger vehicle sales grew for a 14th straight month in August with a 16.68 per cent increase, prompting auto industry body Siam to revise upward its growth estimate for the ongoing fiscal to 10-12 per cent.
According to the data released by the Society of Indian Automobile Manufacturers (Siam), passenger vehicle sales in August were at 2,58,722 units as against 2,21,743 units in the same month last year. Car sales were up 9.53 per cent to 1,77,829 units as against 1,62,360 units in August last year.
"The revival in auto sector has become stronger and we are seeing growth across all vehicles segments... good monsoon and the 7th Pay Commission have contributed in creating positive consumer sentiments," Siam Director General Vishnu Mathur told reporters here.
Buoyed by the sustained performance, Siam expects growth in the passenger vehicles (PVs) segment for FY17 to be higher than its last estimate.
"Originally we have estimated the growth of the PVs to be 11-13 per cent which was later revised downward to 6-8 per cent. Looking at what is happening and after speaking to our members, it is now felt that the growth will be higher. We should be hitting around 10-12 per cent," Siam Deputy Director General Sugato Sen said.
In April-August period, passenger vehicles sales have grown by 10.74 pen cent to 12,15,569 units as against 10,97,704 units a year-ago.
Demand for passenger vehicles has been driven by new models, especially in SUV category with the likes of Maruti Virata Brezza and Hyundai Creta clocking good numbers. Mathur said considering marker sentiment, auto industry is set for one of the best festive seasons in about 3-4 years.
In August, market leader Maruti Suzuki India's domestic PV sales grew by 12.29 per cent to 1,19,906 units. It had sold 90,269 cars as against 86,454 units in the same month last year, up 4.41 per cent.