In the month of December, Passenger vehicle sales in the domestic market rose 10.46%, aided by year-end discounts and low fuel prices, impelling the auto industry association to predict sales in the fiscal year. And it is expected to grow in March at a faster pace than what it had projected earlier.
According to the Society of Indian Automobile Manufacturers (SIAM), 2,30,960 passenger vehicles were dispatched by the automakers from their factories last month, where it was 2,09,086 if compared to December 2014. These included 1,72,671 passenger cars (up 12.87%) and 44,874 utility vehicles (up 4.18%). Sales of passenger cars rose for the 14th straight month.
Speaking about this, Mr Sugato Sen, Deputy Director General of SIAM said,“With the economy improving, sentiments have also improved. Also, the reduction in interest rates has helped sales grow at some extent during the year“. Adding to this, he said “Looking at the current situation, we expect to grow better than 6-8% (in fiscal 2016). I think we should be crossing 10%.” As we know, December is always a difficult month for automakers, “but this time, I think, the inducement from the car manufacturers in terms of discounts to a large extent has helped in sales growth“, he said.
It was a good show for the automakers at the year-end, which helped car sales to grow 9.8% to 2,034,015 units for 2015.