Indian auto industry registered the highest ever May sales in last month; marks 10.05% sales growth led by two-wheelers
Indian auto industry is growing fast and becoming bigger with every passing month. In May 2017, the auto industry has registered its highest ever sales at 2.03 million units. This marked 10.05% sales growth, boosted by the double digit growth of two-wheelers at 1.69 million units, while the passenger vehicles also seen 8.63% growth, led by the utility vehicle sales.
In May 2017, two-wheelers in India registered a sales growth of 11.89% and a large part of that is attributed to the scooter segment that occupies 30% of the Indian two-wheeler market at present. Among the passenger cars, strong demands for utility vehicles have played a crucial role in gaining 2.51 lakh units of sales. The commercial vehicle segment too recovered slightly from the impact of BS-III ban.
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As it seems, despite the BS-III ban impact on the entire auto industry, the Indian auto market is experiencing a sustained growth. The only decline in sales was seen in the commercial vehicle segment and in the three-wheelers segment as well. But the record shows decline is lower than April 2017, which indicates that the market is reviving slowly.
As the Goods and Services Tax is ready to be rolled out across the country from 1st July, the passenger vehicle segment is expected to see a boost in sales as under the new tax structure, SUVs and luxury cars will be cheaper. On the other hand, the smaller car segment could see a marginal decrease in price, resulting in a stronger market.
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Speaking about the two-wheeler sales, it could grow by 9%, while the commercial vehicle segment will see a growth of around 5%-7%. Rural markets across the country have played vital role in making the Indian auto industry’s May sales impressive. The strong demand of two-wheelers and utility vehicles from rural markets is expected to boost the market in near future as well.