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Indian car sales cross two million-mark for first time in 2015

For the first time total car sales in India crossed the two million-mark in 2015, growing at about 10 per cent over the previous year's figures.

Domestic passenger car sales grew by 9.8 per cent to 2.03 million in 2015, while sales of utility vehicles grew by 3.58 per cent to 565,638 units. There was a marginal drop in sales of vans.

The Society of Indian Automobile Manufacturers (Siam) on Monday released production and sales figures for the April-December 2015 period. According to Siam, the industry produced a total of 17.89 million vehicles including passenger vehicles, commercial vehicles, three-wheelers and two-wheelers. This was a 1.31 per cent growth over the same period in 2014.

Sales of passenger vehicles grew by 9.05 per cent in April-December 2015. Sales of passenger cars, utility vehicles and vans grew by 11.54 per cent, 3.17 per cent and 1.31 per cent respectively.

The overall commercial vehicles segment saw an 8.47 per cent growth. Medium and heavy commercial vehicles registered a significant 29.74 per cent growth, but there was a 3.52 per cent fall in the sale of light commercial vehicles. 

Three-wheeler sales declined by 4.3 per cent and passenger carrier and goods carrier sales dropped by 3.89 per cent and 6.19 per cent respectively. Two-wheeler sales registered a marginal growth at 1.21 per cent, with scooters growing by 11.39 per cent and motorcycles and mopeds dropping by 2.46 per cent and 5.39 per cent respectively.

According to Siam, overall automobile exports grew by 1.4 per cent in the April-December 2015 period. Passenger vehicles, commercial vehicles, three-wheelers and two-wheelers saw growth rates of 2.07 per cent, 16.74 per cent, 5.48 per cent and 0.07 per cent respectively.

"Positive consumer sentiment, new launches and increasing disposable incomes are driving the growth in car sales," according to Siam. "With RBI cutting repo rate by 75 bps this fiscal, lower interest rates on passenger vehicle loans helped support demand."