Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
March 27, Monday 2017 9:58 PM       

       HEADLINES: Priest accused of molesting minor girl                                              No case will be filed against Saseendran without complaint, says police                                              Saseendran meets chief minister                                              Four of family found dead                                              Stationary shop near journo's house attacked, owner injured                                              Shiv Sena calls for Osmanabad bandh                                              Aadhaar cannot be made compulsory for welfare benefits: SC                                              'US varsities register drop in Indian student applications'                                              Australian police launches probe into assault on Indian-origin man                                              Pak victim's family pardons Indians convicted for murder                                              Motion tabled in UK parliament against Pak's occupation of Gilgit-Baltistan                                              Shaun Tait retires from all forms of cricket                                              India bowl out Australia for 137, to chase 106 to win 4th Test                                              Kaumudi Facebook
       BUSINESS Next Article: FM cites higher tax mop up to dismiss economic slowdown fears  
       Auto sales at 16-yr low in Dec as demonetisation takes toll
 
         Posted on :19:03:32 Jan 10, 2017
   
A A
       Last edited on:19:03:32 Jan 10, 2017
         Tags: Auto sales at 16-yr low in Dec as demonetisat
 
NEW DELHI: Monthly automobile sales growth rate in India slipped to a 16-year-low in December with total vehicle sales declining by 18.66 per cent as demonetisation hits the industry hard. According to latest SIAM data, most of the major segments, including scooters, motorcycles and cars, witnessed record decline December sales as the automobile sector continued to bear the brunt of negative consumer sentiments in the wake of the ban of Rs 500 and Rs 1,000 banknotes announced in November.
 
Vehicle sales across categories registered a decline of 18.66 per cent last month at 12,21,929 units, from 15,02,314 units in December 2015, as per Society of Indian Automobile Manufacturers (SIAM). "This is the highest decline across all categories since December 2000, when there was a drop of 21.81 per cent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation," SIAM Director General Vishnu Mathur told reporters here.
 
Except for the light commercial vehicles segment, which saw a growth of 1.15 per cent at 31,178 units, all the other categories of the industry saw decline in sales in December, he added. Mathur, however, said the drop in sales is temporary but how sales pick up would depend a lot on "how the Bugdet comes up with steps that will boost consumer sentiments and increase disposable income besides improving the overall economy."
 
Domestic car sales were at 1,58,617 units last month as against 1,72,671 units in December 2015, down 8.14 per cent. It was the lowest rate since April 2014 when sales declined by 10.15 per cent. Passenger vehicle sales declined 1.36 per cent to 2,27,824 units in December 2016 from 2,30,959 units in the year-ago month. The previous biggest decline in sales witnessed by the segment was in October 2014 with a drop of 7.52 per cent.
 
Similarly, total two-wheeler sales in December also witnessed the steepest decline since SIAM started recording data in 1997. It tanked 22.04 per cent to 9,10,235 units compared with 11,67,621 units in the year-ago month. Likewise, scooter sales, which is mostly urban-centric, also saw the biggest decline in over 15 years, falling 26.38 per cent at 2,84,384 units in December 2016 as against 3,86,305 units in the year-ago month. The previous biggest decline of 27.05 per cent was recorded in March 2001.
 
Motorcycle sales also saw the biggest decline in eight years last month at 5,61,690 units from 7,24,795 units a year earlier, down 22.5 per cent, SIAM said. The segment witnessed biggest drop of 23.07 per cent in December 2008. "Almost half of two-wheelers sales comes from rural markets, which have been hit hard by demonetisation," Mathur said while explaining why the segment has suffered a big blow in December.
 
Sales of commercial vehicles were down 5.06 per cent at 53,966 units in December 2016 as against 56,840 units in the same month in 2015, SIAM said. Mathur said whatever sales December witnessed were "driven by the largest discounts ever that the industry has seen."
 
He further said that moderation in sales in the auto industry is expected to continue this month as well as consumers defer purchases on Budget expectations. "At present, there is stock inventory of almost one month in the auto industry, which will have to be cleared," he added.
 
When asked if SIAM would revise its growth forecast for the ongoing fiscal for passenger vehicles, considering the drop in sales in November and December, he said the industry body hasn't looked at the matter yet. "However, with the way things are going and if the Budget doesn't bring big steps to boost consumer sentiments, we may miss our forecast," Mathur said.
 
Last September, SIAM had revised upward its growth estimate for passenger vehicles for the ongoing fiscal to 10-12 per cent. The segment was originally pegged to grow at 11-13 per cent but was later revised downward to 6-8 per cent. Mathur said that the auto industry hasn't yet benefited from a good monsoon and 7th Pay Commission payouts and a lot would depend on the Budget going forward.
 
According to SIAM data, in the cars segment, market leader Maruti Suzuki India saw its domestic sales decline by 10.93 per cent in December at 81,092 units as against 91,043 units in the same month a year ago. Similarly, rival Hyundai Motor India also witnessed a decline of 10.95 per cent at 33,037 units last month as against 37,101 units in December 2015.
 
Tata Motors, however, posted a jump of 39.59 per cent at 9,632 units as compared with 6,900 units in December 2015. In the motorcycles segment, market leader Hero MotoCorp saw its sales dip by 28.98 per cent to 2,79,448 units last month as against 3,93,495 units in December 2015.
 
Homegrown rival Bajaj Auto also saw a decline of 11.35 per cent at 1,06,665 units as against 1,20,322 in the year-ago month. However, Royal Enfield posted a growth of 40.65 per cent at 56,316 units last month as compared with 40,037 units in December 2015, thus becoming the third biggest motorcycle seller in the month overtaking Honda Motorcycle and Scooter India (HMSI) which posted sales of 53,400 units as against 92,280 in the same month in 2015, down 42.13 per cent.
 
In the scooters segment, market leader HMSI posted sales of 1,51,758 units last month as against 1,98,260 units in December 2015, down 23.45 per cent. Chennai-based TVS Motor Co saw its scooter sales dip by 16.17 per cent at 52,116 units as against 62,173 units in December 2015. Hero MotoCorp also saw its scooter sales dip by 60.27 per cent at 32,785 units as against 82,517 units in the same month a year ago. 
A A
       BUSINESS
Next Article: FM cites higher tax mop up to dismiss economic slowdown fears
 
 
BUSINESS HEADLINES
GST bills introduced in Lok Sabha  
COAI favours auction in 2018, wants market to settle down  
Sensex trips 97 points, Nifty below 9,100  
Aditya Puri features in Barron’s 30 best CEOs  
India is 3rd largest aviation mkt in domestic traffic  
China win for Apple as court overturns iPhone ruling  
CBEC to be renamed CBIC under GST regime  
Sebi bans RIL from equity derivatives market for 1 year  
Sensex up for 2nd day, Nifty reclaims 9100 as bank stocks gain  
Govt may table 4 GST bills in Parliament today: Minister  
Airfares in India among 'lowest' globally: Sinha  
Sensex tanks 318 pts, Nifty slumps below 9100 on global clues  
Notes ban to spur economic activity: Govt  
Govt nod for 18 new airports costing Rs 30,000 cr  
Govt nod for 18 new airports costing Rs 30,000 cr  
Adani Enterprises acquires Adani Infra  
Vodafone, Idea Cellular to create new Indian market leader  
Softbank appoints Kabir Mishra to Snapdeal board  
Idea to sell 2G, 3G, 4G mobile data at same price from Mar-end  
Airbus to set up its first Asia training facility in Delhi  
BSNL offers 2GB data per day, unlimited calling for Rs 339  
Sensex soars 188 pts, Nifty at fresh closing peak on Fed move  
Prominent Australians ask Adani to abandon coal mine project  
Harley-Davidson launches Street Rod at Rs 5.86 lakh  
India imports petrol, diesel from China  
 
Do you support the choice of Yogi as UP chief minister?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy