Passenger vehicles sales grew at the fastest pace in six years in 2016-17, crossing the 30 lakh-mark for the first time in India, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Sales of passenger vehicles in the domestic market grew 9.2% to 30.46 lakh units in 2016-17, compared with 27.89 lakh units sold in 2015-16.
The sales of sports unity vehicles (SUVs) grew at a four-year high of 29.9% to 7.61 lakh units in 2016-17. However, growth in the passenger cars segment slowed to a three-year low of 3.8% at 21.02 lakh units.
The two-wheeler sales registered yearly growth of 6.9% to 1.75 crore units in 2016-17 after showing a modest growth of 3% in the previous financial year.
However, sales of three-wheelers declined by 4.9% to 5.12 lakh units and the total commercial vehicles sales grew 4.2% to 7.14 lakh units.
The overall automobile exports declined 4.5% in 2016-17 on account of sharp decline in export of three-wheelers and two-wheelers. The growth in export of passenger vehicles and commercial vehicles stood at 16.2% and 5% respectively in 2016-17.
For the current financial year, SIAM expects overall passenger vehicles sales to grow 7-9%, two-wheelers 9-11%, commercial vehicles 4-6% and three-wheelers 4-6%.
Passenger and commercial vehicle manufacturers have an inventory of 1.2 lakh vehicles, compliant with old BS-III emission norms, worth Rs. 5,000 crore piled up following the Supreme Court’s order.
Automobile dealers offered a heavy discount to sell their inventory after Supreme Court on March 29 ordered a ban on registration and sale of BS-III vehicles from April 1.