Domestic passenger car sales grew by 8.5% to 159,325 units in December 2011, as compared to 146,856 units in the same month a year ago.
The overall automotive industry grew by 8.5% to 14,13,709 units, with sale of scooters leading the growth at 16%, followed by trucks and buses that grew by 14.5%. Motorcycle sales grew by 7.3% to 807,829 units.
For the next fiscal year 2012-13, Society of Indian Automobile Manufacturers (SIAM) has predicted a more bullish 11-13% growth rate for cars.Overall sales in 2011 grew by 14.3% to 1,69,13,355 units. The year saw for the first time, passenger vehicle sales crossing the 25-lakh units with a growth of 6.0%. That took the production of passenger vehicles to over 30- lakh units, another first. The year also saw more than 1.5 crore two-wheelers being produced.
SIAM revised its growth estimate for car sales in this financial year to between 0 and 2%, a stark contrast from the 16-18% growth rate projection at the start of the fiscal in April 2011. This is the the third time that SIAM has cut its growth forecast.
“If we do well in the next three months, we’ll break even,” said Sugato Sen, senior director, SIAM. “If we do extraordinarily well, it could go up to 2%.”
“Next year is going to be another challenging year but the indications are that the Reserve Bank of India will not increase rates further,” said S Sandilya, president, SIAM.