Blistering car sales in India cooled off in 2005-06, growing by a modest single digit 7.55 per cent on a high base year, even as the outlook appeared bullish following the eight per cent excise duty cut on small cars announced in the Budget.
According to figures released by Society of Indian Automobile Manufacturers (SIAM), car sales in the year ended March 31, 2006, stood at 8,82,094 units against 8,20,179 units in 2004-05.
The growth in 2005-06, however, was a climb down from the high 17.7 per cent rise in year ended March 31, 2005.
Sales are expected to go strong this fiscal with analysts pointing out that the eight per cent excise duty cut on small cars is likely bring in more numbers. This can also be gauged by the high 23 per cent growth in March by when most of the car companies had announced a price cut to pass the excise duty benefit to the consumers.
Motorcycles continued the blitzkrieg as sales soared by 17.1 per cent in the domestic market and touched 58,15,417 units against 49,64,753 units in 2004-05.
"Backed on the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of the rural people, the two-wheeler segment continued to post a steady growth," SIAM said.
{{/usCountry}}"Backed on the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of the rural people, the two-wheeler segment continued to post a steady growth," SIAM said.
{{/usCountry}}Overall, the two-wheeler segment, including scooters and motorcycles, grew 13.6 per cent at 70,56,317 units against 62,09,765 units in 2004-05.