India’s automobile sector on recovery path for sure: SIAM

The Dollar Business Bureau | @TheDollarBiz Encouraged by strong exports and a revival in domestic sales, the Society of Indian Automobile Manufacturers (SIAM) says that India’s auto industry is on the road to a slow but sure recovery. According to SIAM, India’s automobile exports surged by around 21.3% in April-August 2014 compared to the corresponding period last year. While exports of two-wheelers grew by 29.16%, commercial vehicles and three-wheelers posted export growth rates of 16.51% and 14.53% respectively. However, exports of passenger vehicles grew by just 0.17%.

Source - SIAM

Sales in the domestic market also increased in April – August 2014. Sales of passenger vehicles increased 4.46%, helped by growth in passenger cars sales (5.24%) and utility vehicles sales (9.46%), while sales of vans declined 13.89% in the period. Sales of three-wheelers grew 16.88% due to growth in sales of passenger carriers (18.42%) and goods carriers (9.94%). In the two-wheeler segment, scooter sales surged around 30.72%, helping two-wheeler sales increase 14.79%. However, sales of commercial vehicles declined 13.66%, pulled down by a 17.69% decline in sales of light commercial vehicles in April-August 2014. Overall automobile production increased in August 2014. SIAM says that the auto industry produced 1,943,134 vehicles in the month, up about 14.86% from 1,691,699 units produced in August 2013, but down about 3% from 1,998,877 vehicles produced in July 2014.