Domestic passenger car sales continued to grow for the fourth consecutive month, with May sales registering a 2.48 per cent rise, but the trend may reverse soon unless there is more support from the government, says industry body SIAM.
According to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales in May went up to 1,13,490 units from 1,10,745 units in the year-ago period.
The total two-wheeler sales in May also surged by 12.45 per cent to 7,27,937 units from 6,47,358 units in the same period last year. Bike sales during the month was up 12.34 per cent at 5,76,541 units as against 5,13,209 units in the corresponding month a year ago, SIAM said.
SIAM, however, said the growth trend might take a U-turn if there is no additional support from the government.
"Whatever growth we have seen in the last 3-4 months, all because of the effect of the two stimulus packages, but unfortunately it (the effect) is fading. To keep the growth going, the industry needs more stimulus from the government," SIAM senior director Sugato Sen said. On the basis of feedback received from vendors and dealers, SIAM is expecting lower sales in June.
"June will be worse for passenger vehicles. Fundamentals have not changed - unavailability and high cost of finance are still affecting," Sen said, adding public sectors banks are aggressively coming forward, but private sector lenders are not supporting the auto industry to a big extent.
The industry witnessed a total vehicle sales of 9,29,596 units as against 8,53,969 units in May this year, up 8.86 per cent, SIAM said.
In the passenger-car segment during May, sales of car market leader Maruti Suzuki [ Images ] India [ Images ] (MSI) increased by 9.71 per cent to 62,878 units from 57,315 units in the same month last year, SIAM said.
"The whole car sales is driving on the back of Maruti Suzuki's sales, which is constantly making good growth. MSI has been able to reach to areas, where others have not been able to," Sen said.
Hyundai [ Images ] Motor India, however, registered a dip of 4.10 per cent at 23,501 units as against 24,506 units a year ago.
Tata Motors' [ Get Quote ] sales were down at 12,838 units, while the same stood at 14,228 units in May last year, a fall of 9.77 per cent.
Interesting, the sales of General Motors [ Images ], whose parent filed for bankruptcy in the US in early June, rose by 1.18 per cent at 3,890 units in May as against 3,847 units in the same month last year.
The month of May saw another carmaker Honda Siel [ Images ] Cars registering a jump of 11.01 per cent at 4,073 units compared with 3,669 units in the corresponding period last year.
In the motorcycle segment, market leader Hero Honda [ Images ] registered a 20.77 per cent surge in its sales at 3,59,145 units in May compared with 2,97,387 units a year-ago.
Rival Bajaj Auto's [ Get Quote ] sales, however, plummeted by 12.64 per cent at 1,13,630 units as against 1,30,068 units in the same month last year, SIAM said.
Meanwhile, Chennai-based TVS [ Get Quote ] Motor, registered a jump of 3.02 per cent at 43,165 units as against 41,901 units.
Honda Motorcycle & Scooter India also saw its bike sales rising by 33.75 per cent at 36,200 units compared with 27,066 units in the year-ago period.
In the scooter segment, the total sales increased by 11.15 per cent at 1,08,265 units as against 97,403 units a year ago, SIAM said.
Honda Motorcycle & Scooter India had a growth of 7.64 per cent at 60,128 units as against 55,858 units in the same month last year.
According to the SIAM figures, Hero Honda's scooter sales were up by 56.29 per cent at 14,725 units as against 9,422 units last year.
TVS Motor's scooter sales increased marginally at 21,778 units compared with 21,720 units last year. Suzuki Motorcycle India's scooter sales grew by 35.12 per cent to 8,949 units in May from 6,623 units in the same month last year.
Three-wheeler sales during May were up by 5.28 per cent at 30,036 units compared with 28,530 units in the same month last year.
SIAM said commercial vehicle sales in the month, however, dipped by 14.78 per cent to 30,800 units from 36,141 units in the year-ago period.
Light commercial vehicle sales during the fifth month of the year was up by 11.83 per cent at 18,619 units as against 16,649 units in the year ago period.
Medium and Heavy Commercial vehicle sales in May fell by 37.51 per cent at 12,181 units compared with 19,492 units last year.