Auto sales growth slip to 16-year low in December due to demonetization
Posted on: 10/Jan/2017 4:30:14 PM
According to latest data released by Society of Indian Automobile Manufacturers (SIAM), major segments, including scooters, motorcycles and passenger cars, witnessed record decline in December sales. The reason for this is due to demonetization.
Indian automotive industry has registered 18.66 percent decline in domestic sales for the month of December 2016 and stood at 1,221,929 units. The exports also suffered negative sales of 3.12 percent at 301,295 units, The 18.66 percent decline is highest ever in last 15-16 years. This kind of magnitude last happened in December 2000.
Only light commercial vehicles segment grew at 1.15 percent with 31,178 units sold last month.
Domestic car sales were at 1,58,617 units last month as against 1,72,671 units in December 2015, down 8.14 percent. It was the lowest rate since April 2014 when sales declined by 10.15 percent. 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 to 2,84,384 units in December 2016 from 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.
