Auto sales on recovery lane as cash ban impact wears off
The overall automobile sales in India rose marginally in February signalling revival in the industry that was hit hard by the currency pullback in November last year.
With demonetisation impact steadily waning, overall sales across categories rose 0.94 per cent to 17,19,699 units in February compared to 17,03,736 in the same month last year.
In December 2016, the overall automobile sales growth had touched a 16-year-low at 12,21,929 units, down 18.66 per cent, from 15,02,314 units in December 2015.
In January, the auto sales across categories had registered a decline of 4.71 per cent to 16,20,045 units, from 17,00,141 in January 2016.
"We are now witnessing steady recovery in the industry.
Impact of demonetisation is steadily waning and we expect the impact to gradually fade away in the next 1-2 months," SIAM Director General Vishnu Mathur told reporters here.
According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle sales rose 9.01 per cent to 2,55,359 units in February, from 2,34,244 a year ago.
"As dealers stocked up inventory in January itself, February sales are slightly on the lower side," Mathur said.
He, however, added that recovery is happening in both urban and rural areas and the industry is on the path to achieve close to a double-digit growth in the segment in the current fiscal. Domestic car sales also ticked up to 1,72,623 units as against 1,64,559 in February last year, up 4.9 per cent.
During February, market leader Maruti Suzuki India saw its car sales rise by 1.59 per cent to 88,541 units as against 87,149 in the same month last year. The company's utility vehicle sales jumped over two-fold to 17,863 units as against 8,484 in February last year.
Rival Hyundai Motor India reported an increase of 2.17 per cent in its domestic car sales at 33,149 units compared with 32,442 in the year-ago period. Its utility vehicles sales came in at 9,178 units as against 8,274 last year, up 10.92 per cent.
E-vehicles push: Govt to focus on public transport for impact
The Centre will promote large-scale use of electric vehicles in the country by focussing on public transport system that includes taxis, buses and three-wheelers, since the move is likely to help in lowering the pollution level, a top official said on Friday. "We will be focusing mostly on the public transport. We were not leaving behind the passenger vehicles and private vehicles but the focus will be on public transport, shared taxis, three wheelers where the impact will be much more," Girish Shankar, Secretary in the Department of Heavy Industry, said.