Low consumer sentiments, sustained high interest rate and rising fuel costs have led to car sales growing to the slowest pace in the last seven months. According to the data released by industry body Society of Indian Automobile Manufacturers (SIAM), car sales grew mere 2.8% in May at 163,229 units against the corresponding month last year.
“This is the slowest growth since October last year when car sales witnessed a decline of 23.8%,” said SIAM director general Vishnu Mathur. “The overall sentiment in the market is negative.”
Sequentially too the car sales growth slowed from 3.4% in April to 2.8% in May. However, the passenger vehicle segment that includes cars, utility vehicles and vans showed better growth rate at 7.5% at 221,135 units. Sale of utility vehicles, run on subsidised diesel, surged 55.0% in May, while van sales slumped 16% at 17,271 units.
Growth in motorcycle sales too slowed in May at 7.2% at 887,634 units, while scooter sales surged 34% at 235,185 units. The overall two-wheeler segment grew 11% at 1.07 million in May.
Commercial vehicle sales grew 9.2% mainly on the back of light trucks and mini cabs clocking 24% at a little less than 40,000 units. However, medium and heavy truck and bus segment declined 10% at 22,000 units.