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Auto industry witnesses rapid sales growth in 2015-16 since 2010-11

Auto industry witnesses rapid sales growth in 2015-16 since 2010-11

By Anish Singh

New Delhi, Apr 10 (UNI) Despite government’s lackluster policy towards automobile sector, the domestic passenger car sales have witnessed a rapid increase in 2015-16 since the last five years, even then the auto makers association cut its prediction to 6-8 per cent in the current fiscal as compared to 11 per cent, a year ago period.

On being asked for reducing its forecast figure, Sugato Sen, Deputy Director, Society of Indian Automobile Industry said, “May be the industry is not confident enough to grow at 11 per cent. In the last one and half years many things have changed. There is no clarity on policies. In 29th February budget speech, Finance Minister Arun Jaitley announced an infrastructure cess of one per cent on small petrol, liquefied petroleum gas and compressed natural gas cars, 2.5 per cent on diesel cars and four per cent on higher engine capacity vehicles and sport utility vehicles.”

He also said, “I have nothing seen in the last one and half year that this government has done anything to support this industry. In fact, they have done everything to curb its growth.”

The sales of passenger car shot up by 7.87 per cent at 2,025,479 units in the year 2015-16 against 1,877,706 units in the last year, automobile industry body data showed.

For the year 2010-11, the industry recorded a sales growth of 29.08 per cent at 19,82,702 units and in 2011-12, it registered a growth of 2.96 per cent at 2,031,306 units in its sales.

However, in the subsequent fiscal the industry faced a 7.74 per cent dip in its sale and the volume reduced to 1,895,471 units. The trend continues for 2013-14 with a minor improvement in its percentage wise terms. The sector registered a negative growth of 4.65 per cent at 1,786,826 units.

Domestic passenger vehicles, which include passenger cars, utility vehicles and vans, sales rose by 7.24 per cent at 2,789,678 units in the current fiscal as compared to 2,601,236 units in the last year.

The sales of passenger vehicles registered a growth of 28.02 per cent in its sales at 2,520,421 units in 2010-11 while in 2011-12, it recorded a rise of 5.13 per cent at 2,629,839 units and 1.34 per cent in 2012-13 at 2,686,429 units.

However, the sales volume slashed by 6.06 per cent in 2013-2014 at 2,503,509 unit.

Mr Sen also pointed out that the Supreme Court’s order to ban high-end diesel vehicle would also hurt the industry’s prospect in the coming years.

On the Reserve Bank of India’s cut of repo rate by 25 basis points, he said that the industry would witness a result in second quarter of FY 2016-17.

According to SIAM data, “The sales of utility vehicles rose by 6.25 per cent at 5,86,664 units in 2015-16 from 5,52,135 units in the last year.”

Vans sales grew by 3.58 per cent to 1,77,535 units from 1,71,395 units. However, motorcycle sales witnessed a marginal decline of 0.24 per cent at 10,700,466 units in the current fiscal as compared to 10,726,013 units, a year earlier.

Cumulative commercial vehicles, which include passenger carriers and goods carriers sale up by 11.51 per cent at 6,85,704 units for fiscal under review as compared to 6,14,948 units in 2014-15.

Total two wheelers, including Scooters, bikes and mopeds, sale grew by 3.01 per cent at 16,455,911 units from 15,975,567 units.

The sale of total three wheelers saw a slight increase of 1.03 per cent at 5,38,092 units in 2015-16 against 5,32,626 units, a year ago.