Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Environment conducive for growth of automobile sector: SIAM

Author: IANS/Tuesday, October 10, 2017/Categories: Auto & Ancillary

Environment conducive for growth of automobile sector: SIAM

New Delhi - The Society of Indian Automobile Manufacturers (SIAM) said that the overall growth of the automobile sector "looks conducive" as the industry has "more or less" overcome certain disruptions like demonetisation and the implementation of GST.

"At the moment the growth is looking good... September of course is consequent to festive season and has good numbers, also October will have two major festivals -- Dhanteras and Diwali... so sales look good," said Rajan Wadhera, Vice President, SIAM.

"Overall, the environment looks conducive for growth." 

As per the data released by the SIAM, sales of domestic passenger cars increased by 6.86% in September to 208,656 units from 195,259 units sold in the corresponding period of 2016.

The off-take of other sub-segments such as utility vehicles zoomed up by 26.21% during the month to 84,374 units, while sales of vans rose by 3.72% to 16,925 units.

The industry data revealed that the overall domestic passenger vehicle sales edged higher by 11.32% in September to 309,955 units from 278,428 units sold during the corresponding period in 2016.

Similarly, commercial vehicles' sales recorded healthy growth last month. It rose 25.27% to 77,195 units in September. The segment is a key indicator of economic activity.

The three-wheeler segment's off-take increased by 19.08% to 61,860 units during the month under review.

Besides three-wheelers, the overall sales of two-wheelers, which include scooters, motorcycles and mopeds, increased by 9.05% to 2,041,024 units.

Exports across categories increased by 12.73% to 354,049 units during last month.

In addition, the industry data showed that the Indian automobile sector's overall sales rose by 10% in September 2017 -- with total sales at 2,490,034 units across segments and categories.

In its forecast for 2017-18, SIAM said that positive factors such as increased demand due to festive season and implementation of the seventh pay commission in a few states will help boost growth.

However, it said that an expected increase in cost of ownership by 3-5% in 2017-18, as a result of increasing fuel costs and insurance expenses will put pressure on demand.

It further stated that a slowdown in GDP growth, frequent policy changes and increase in commodity prices were other major concerns.

Commenting on SIAM's data Sridhar V, Partner, Grant Thornton India said: "Auto sector has seen a refreshing growth across all segments and has witnessed highest dispatches primarily because of new introductions during the festival season, favourable monsoon and settled down regulatory and tax positions on the pollution and GST enabling customers to loosen the purse strings."

"Overall the second quarter has been a dream run for the sector."

Print Rate this article:
No rating

Number of views (162)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free