Report – Indian car sales grew by 15% in June 2014, but not organically says SIAM

Nithyanandh

Nithyanandh K, As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!

The Indian auto industry witnessed a growth of 15% in car sales in the month of June, the fastest rate in the last 10 months. However, industry governing body SIAM warns that the surge in sales was rather powered by customers advancing their car buying plans to elude a possible withdrawal of excise duty concessions.

The excise duty cuts for various segments of automobiles, implemented by the outgoing government in the interim Budget 2014, were originally to expire on June 30. Mr. Vikram Kirloskar, President of SIAM and Vice Chairman of Toyota Kirloskar Motor, told Livemint that June’s sales surge was fueled by consumers’ fear of missing out on the excise duty cuts. It needs to be seen whether the momentum is sustained in the coming months, he added.

Hyundai Xcent Review red side
The sub-4 metre segment of passenger cars stand to lose the most if the excise duty cuts are withdrawn.

Earlier, a delegation from SIAM held meetings with ministers of the Modi government to discuss about the state of the industry. Eventually, the new government decided to retain the discounted excise duty structure till December 31, 2014.

In June, passenger car sales grew by 14.8% to 1,60,200 units while the auto industry as a whole posted a growth of 12.2% at 1.5 million units. In the April – June 2014 quarter, car sales improved by a mere 2.24% at 444,200 units while the industry grew at a rate of 10.8% at 4.84 million units.

Check out the top 4 car launches in the first half of 2014

On a bigger picture, India and Brazil are the only two auto markets in the global top 10 to have posted a sales decline in the first five month period of 2014.

With the excise duty cuts still in place, automakers are pinning high hopes on the festive season and are preparing for it with a flurry of launches.

[Source: Livemint.in]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Maruti Swift News & Updates

2017 Hyundai Grand i10X (facelift) front three quarter 2017 GIIAS Live

2017 Hyundai Grand i10X (facelift) – 2017 GIIAS Live

2017 Honda Shuttle (Honda City wagon) details leaked

2017 Honda Shuttle (Honda City wagon) details leaked

2017 Maruti Dzire front quarter right First Drive Review

More first-time car buyers choosing Maruti Swift & Maruti Dzire over Alto – Report

2017 Suzuki Swift Sport leaked document page one

Specifications of the 2017 Suzuki Swift Sport leaked in Japan

2018 Suzuki Swift ASEAN spec spied first time front three quarters

ASEAN spec 2018 Suzuki Swift spotted for the first time

2017 Suzuki Swift Sport dashboard

SMC releases new details & photos of the 2017 Suzuki Swift Sport