Indian car market may finally cross the magical 3-million sales mark, as demand has revived post demonetisation and customers interest in new models is reviving industry fortunes, Society of Indian Automobile Manufacturers' (Siam), apex body of vehicle-makers has said.
The passenger car sales had hit the 2.96 million sales and missed the target by a whisker in calendar year 2016, but the recovery of past two months is likely to bring back the charm, Vishnu Mathur director general of Siam told Business Today.
Domestic passenger vehicle sales rose 9.01per cent to 2,55,359 units in February from 2,34,244 units in the same month last year.
"The growth is in-line with our estimates and 3-million sales are achievable in the fiscal. Helped by 14.4 per cent growth in January when 2,65,000 lakh units were sold, we can surely breach the 3-million annual sales mark in the fiscal," Mr Mathur said.
New models like the Maruti Baleno RS, Kwid Climber and Honda City 2017 have been received well in the market while, fresh launches of Honda's compact SUV WR-V and Tata Tigor will keep the momentum going.
The April-February passenger cars growth stood at 9.16 per cent, keeping alive the chances of double digit growth for FY17, with a total of 2,76,4206 units sold.
Siam data showed the recovery is largely led by the higher demand for sports utility vehicle of SUV, which grew 31 per cent to 6,84,306 units till February. Car sales grew a meager 3.44 per cent to 19,12,931 units.
February also remained robust for other segments. Sales of commercial vehicles were up 7.34 per cent to 66,939 units in February, SIAM said
Two wheeler sales were flat and saw sales of 8,32,697 motorcycle units as against 8,59,582 units a year earlier, a decline of 3.13 per cent; however, scooter sales went up in the period (4,52,295 units) by 3.70 per cent, and this pulled up the segment. Total two-wheeler sales in February declined marginally to 13,62,045 units as compared with 13,62,177 units in the year-ago month.
Cumulative vehicle sales across categories registered a marginal increase to 17,19,699 units from 17,03,736 units in February 2016, it added.