Auto sales continue robust growth in August: SIAM

SIAM welcomes differential taxes on hybrids, and other vehicles

Sales of passenger cars stood at 198,811 units, registering a growth of 11.80 percent (August 2016: 177,829).

Though, the Society of Indian Automobile Manufacturers (SIAM) felt relieved that a GST Cess of 25 per cent has not been imposed across the board on all larger cars as was the apprehension. The GST led to lower prices for most of the passenger vehicles, but bigger cars and SUVs are set to become more expensive after the government on Saturday increased a cess on such vehicles by as much as 7%.

"GST council has taken mid-path for overall increase of cess on bigger vehicles including SUV, growth looks positive for automotive industry this year".

"In terms of passenger vehicles and two-wheelers this basically implies that rural demand is back after the impact of demonetisation. monsoon has been good and the impact of demonetisation is wearing off so that we are seeing the industry bouncing back in the month of August", said Vishnu Mathur, Director General of SIAM.

"Besides pent up demand continuing from July post-GST price cuts, consumers also advanced purchasing vehicles as reports came about the imminent hike in GST cess rates", he said.

In August, market leader Maruti Suzuki India's passenger vehicle sales grew by 26.16 percent at 1,51,270 units. Their numbers were up by 19.93 percent in the month to 38,934 units. The overall industry registered positive sales figures last month and the two-wheeler industry, in particular, saw double digit growth in the domestic market compared to sales in August 2016. Due to a hard Q1, M&HCV sales remain under pressure and are down by 13.60 percent to 97,599 units. Passenger carrier sales declined by 2,969 units in August 2017 in comparison with 4,100 units sold in the same month past year.

Rival Honda Motorcycle and Scooter India's (HMSI) bike sales were at 1,91,949 units as compared to 1,29,926 units in the same month a year ago, a jump of up 47.74 percent. The industry produced a total of 11.95 lakh (11,950,356) vehicles between April-August 2017, against 10.91 lakh (10,919,510) vehicles produced during the same period past year, registering a total growth of 9.44 per cent. MHCV sales grew by 28.43% as it sold 26,376 units in August 2017 in comparison with 20,537 units in the same month previous year.

Vehicle sales across categories registered a growth of 14.49 percent to 23,02,158 units from 20,01,802 units in August 2016, it added.

"SIAM feels that the long standing anomaly in the taxation of 10-13 seater vehicles could have been fully corrected and these should have been fixed at a GST rate of 28 per cent without any cess as these are public transport vehicles and not for personal use", it said in a statement.

Related:

Comments

Latest news

Richard Branson's Private Island Destroyed by Hurricane Irma: It's a 'Traumatic Time'
The island of Barbuda, sister to Antigua is now barely habitable as Irma smashed all the homes on the tiny island. The Virgin boss shared pictures of his team holed up together in bunk beds as they waited out the storm.

South Korean Foreign Minister Says North Korea On 'Reckless Path'
Security Council diplomats, who weren't authorized to speak publicly because talks have been private, said the US and China were still negotiating the text late Sunday.

Education Secretary Betsy DeVos to visit KC area this week
The guidance did not change the recommended standard of proof used in campus disciplinary hearings, either, as is widely believed. Betsy DeVos is set to speak at the University of Baltimore's fall 2017 commencement, and some on campus are not happy about it.

Jeremy Corbyn wants to retain trade within the single market post Brexit
However, about a dozen Labour MPs from Leave-backing constituencies could rebel against Jeremy Corbyn's orders. It will also smooth the path to Brexit by transferring European Union laws on to the domestic statute book.

Hurricane Irma leaves nearly 6 million without power in Florida
The National Weather Service for Tampa Bay said it had received many questions on social media about what the cone represents. Some businesses are suspending their operations and closing early on Monday.

Other news