Domestic sales of Passengers Vehicle saw a decline of 6.2 percent in January. Siam, an association of vehicle manufacturers, gave this information on Monday. The main reason for this is the moderation in GDP growth rate is the weak demand for vehicles. According to the Society of Indian Automobile Manufacturers (SIAM) data, a total of 2,62,714 passenger vehicles were sold in the domestic market in January, compared to 2,80,091 in January 2019.
Car sales during the period declined by 8.1 percent to 1,64,793 vehicles as compared to 1,79,324 cars sold in January last year.
13.83 percent decline in January to 17,39,975 vehicles
SIAM said that sales of various categories of vehicles declined by 13.83 percent to 17,39,975 vehicles in January, compared to 20,19,253 vehicles sold in January last year. Siam President Rajan Vadhera said, “There is a pressure on vehicle sales due to rising cost of keeping vehicles below GDP growth rate.” In view of the implementation of Bharat Stage-6 emission standard from April 1 in the country, vehicle manufacturers have changed from BS-4 to BS-6. Due to this, the price of vehicles has increased. At the same time, due to the increase in cost, many companies have increased the price of the vehicle in January.
Motorcycle sales of 15.17 scooters decreased by 16.21 percent
Vadhera said, “With the government’s recent announcements about the infrastructure rural economy, we hope that it will increase vehicle sales and support growth.” Two-wheeler sales declined by 16.06 per cent to 13,41,005 units in SIAM’s original review period, compared to 15,97,528 units in January last year. During the review period, motorcycle sales fell 15.17 percent to 8,71,886 vehicles, scooter sales fell 16.21 percent to 4,16,594 vehicles.
Commercial vehicle sales down 14.04 percent
In January 2019, this figure was 10,27,766 4,97,169 vehicles respectively. According to SIAM, commercial vehicle sales fell 14.04 percent to 75,289 vehicles in January 2020 from 87,591 vehicles in January 2019. SIAM Director General Rajesh Menon said that wholesale sales of all categories of vehicles except the three-wheeler category have fallen. He said, ‘We hope that the kind of response we are getting at the ongoing Auto Expo, it will help to strengthen the perception of the customers. So far, more than 70 new vehicles have been introduced here.