Car sales dip in July
New Delhi: Passenger vehicle sales dipped for the first time in July this year by 2.71 per cent to 290,960 units because of a higher base effect as dealers had stocked up in July last year after the rollout of the goods and services tax.
"Last year in July, sales had shot up because of the GST rollout. So, despite this drop in sales last month we are satisfied with the situation as we believe that all the industry segments are on a growth path," SIAM deputy director-general Sugato Sen told reporters here.
In June last year, everybody was clearing their stocks and production was affected. In July, they had to refill the complete pipeline again and this resulted in strong sales, analysts said.
According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle (PV) sales declined to 2,90,960 units last month from 2,99,066 units in July last year. Domestic car sales also declined marginally to 1,91,979 units compared with 1,92,845 in July 2017.
PV sales had last dropped marginally in October last year. The goods and services tax (GST) was launched on July 1, 2017. The new indirect tax regime subsumed over a dozen local taxes.
Sen said 10 million vehicles were produced in the country in the April-July period of the current fiscal, a 17 per cent growth over 9.3 million units a year ago.
"After a few years of downturn, all segments of the industry are now showing growth and we expect it to continue over the next two years," he said.
The high sales base in August and September last year is also expected to reflect negative growth this year in these two months, Sen said.
In July this year, Maruti Suzuki India reported a marginal decline in its domestic PV sales at 1,52,427 units. Hyundai Motor India saw a growth of 1.1 per cent at 43,481 units. Honda Cars India, which moved on to the third position, registered a growth of 16.89 per cent at 19,970 units. Mahindra & Mahindra registered a decline of 5.83 per cent at 19,739 units, while Tata Motors saw its PV sales jump 15.58 per cent to 19,410 units.