As per the figures released by the apex industry body SIAM, the sales volume of the automobile industry was flat at 0.15 percent (15,26,125 units sold) in the month of February. While the passenger vehicles segment grew by 6.16 percent (2,31,165 units sold), the two-wheeler segment showed negative growth at 0.99 percent (12,08,084 units sold).
Improved market sentiment, a multitude of new car launches in recent months and the recent RBI rate cut drove consumers into showrooms. February 2015 saw a 6.85 percent growth in the passenger cars segment (1,71,727 units sold). However, during the 11-month (April 2014 - February 2015) period, cumulative passenger vehicles sales volume grew by 4.03 percent (23,56,716 units sold), with cars up by 5.24 percent (17,00,006 units sold) year on year.
Two-wheeler sales, however, which were the bulwark of the Indian automobile industry not so long ago, have been dwindling. From double-digit growth in the past, the sector’s sales have now slowed to poor single-digit growth. In February 2015, the overall two-wheeler sales volume was down 0.99 percent (12,08,084 units sold) compared to the previous month. While scooters remained popular with buyers, showing a growth of 18.78 percent (3,70,527 units sold) in the month, motorcycles continued to take a beating, for the fifth month in a row. Bike sales were down 8.22 percent (7,74,122 units sold) last month, year on year.
Poor sales in the two-wheeler segment can be attributed to the dwindling sales in the rural market. Rural regions haven't seen a wage hike for some time now, and farm production and harvesting are also down, both of which have dragged down market sentiment. The 100cc-125cc commuter bike segment is bearing most of the brunt of this trend.
“In the last 12 months, restrictions on funding for the National Rural Employment Guarantee Act have led to an uncertainty in employment and money in the hands of people. But with the Centre now looking at different funding options for the rural regions, these funding programmes should take off sooner or later,” said Sugato Sen, Deputy Director General, SIAM.