New Delhi, Jul 10 (UNI) Hardening of interest rates and fuel prices are taking a toll on car sales with growth rate for June recording the lowest this fiscal of 6.10 per cent.
However, car exports continue to register a hefty growth rate of 43.05 per cent in June, nothwithstanding the downslide in economic parametres and the adverse macro economic variables like interest rates.
''Manufacturers were trying to boost sales by discounts. With margins under pressure, discounts and other incentives are drying up,'' Society of Indian Automobile Manufacturers (SIAM) Senior Director Sugato Sen told reporters here.
The ever increasing competition in this sector were compelling manufacturers to lure the customers by offering discounts and other incentives.
But, the manufacturers have started withdrawing these benefits as the increasing cost of raw materials like steel had squeezed their margins.
Moreover, Mr Sen said the double digit inflation, rising interest rates and higher fuel prices were the other factor that have led to fall in demand.
He was of the view that sales would remain flat in the next few months, apart from some firms bringing down the production.
In two-wheeler segment, the domestic sales decreased 2.1 per cent at 89,809 units in June from 91,759 units during the corresponding month last year, the data released today by SIAM showed.
The domestic sale of commercial vehicles such as trucks and buses increased 13.53 per cent to 40,324 units in June from 35,518 units over the same month last year.
The industry body SIAM said the domestic sales of three wheelers in June stood at 29,804 units, against 31,161 units during the corresponding period last year, indicating a fall of 4.35 per cent.
The domestic passenger vehicles sales increased 8.06 per cent during June at 1,29,536 units as against 1,19,867 units during the same month a year ago.
The domestic sale of passenger cars increased 12.35 per cent to 3,09,221 units during April-June this year against 2,75,208 units during the corresponding period previous year.
The scooter sale jumped 4.89 per cent to 2,68,716 units in first quarter fiscal 2008-09 as compared to 2,56,176 units in same duration last financial year, while commercial vehicles sales during April-June this year stood at 1,09,485 units, a 9.59 per cent up from 99,901 units in same period FY2007-08.
However, the sales of three-wheelers felt marginally at 85,409 units against 85,718 units sold in the first quarter of previous fiscal.
The passenger vehicle sales has seen a growth of 15.08 per cent at 4,01,495 units from 3,48,883 units in April-June last fiscal.
The passenger cars exports grew 43.05 per cent to 23,568 units in June this year against 16,475 units in same month a year ago, whereas scooter exports decreased 21.37 per cent to 1,670 units from 2,124 units.
The commercial vehicles exports also felt 11.14 per cent to 4,694 units against 5,283 units in June, 2007.
However, the three-wheeler exports increased 1.84 per cent to 9,932 from 9,752 units, while the passenger vehicles exports zoomed 37.68 per cent to 24,097 units from 17,501 units in June 2007.
For April-June this year, the passenger cars exports stood at 66,119 units from 45,138 units during the corresponding period last year, indicating a jump of 46.48 per cent.
However, the scooter exports felt 20.80 per cent to 5,558 units from 7,018 units, while commercial vehicles exports decreased 9.91 per cent to 11,943 units from 13,257 units during April-June 2007.
For first quarter of current fiscal, the exports of three-wheeler stood at 29,646 units against 36,406 units in the same period last fiscal, indicating a fall of 18.56 per cent.
UNI MP SBA AS1900