Considering all the vehicle segments in the domestic market, the auto industry posted robust growth over low base in same month last year
Indian auto industry has posted an impressive double digit growth in November 2017. The auto industry posted an overall growth of 24.05% in last month over the same month in 2016, which was caused by the demonetisation. Last November due to the cash crunch, footfalls in dealerships declined drastically. While this year, several factors have played crucial role in boosting business.
Salary hike under seventh pay commission, good monsoon season, overall impressive performance of the industry during festive season have played major roles for the auto majors to post positive growth, resulting in the robust double digit sales hike during November 2017. As SIAM data reveals, all the vehicle segments like passenger vehicle category and commercial vehicle categories have seen YoY hike in sales.
The increase in sales is majorly attributed to the three-wheeler category that posted 78.63% hike at 60,131 units. This marked almost double the figure compared to same month last year. While commercial vehicles saw rapid decline in sales right after demonetisation, the CV category has seen massive rise in sales in last month.
The commercial vehicle category posted 50.43% growth at 68,846 units in last month with a large chunk of that attributed to the medium and heavy commercial vehicles. The medium and heavy commercial vehicles particularly posted a growth of 62.63% at 28,459 units.
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The passenger vehicle segment has posted 14.59% YoY growth in November at 275,417 units. The UV segment led the way with 44.65% growth at 77,824 units. Two-wheelers too seen a strong 23.49% growth at 15,35,277 units. Scooters have led the sales with a sales hike of 30.25% at 506,267 units.
While the GST rolled out in July this year certainly affected the business a bit, the automakers have experienced overall positive sales result despite price hike due to the new tax structure. The automakers have seen sales hike from rural and small town areas. Also, the improvement of infrastructure like road and highways have helped in good sales.