Domestic vehicle sales dip 3% yoy in December on weak festive demand, inventory reduction

As per SIAM data, all segments declined in the last month of the calendar year 2018.

Jan 14, 2019 07:01 IST India Infoline News Service

Total domestic volumes declined 3% yoy in December 2018 as companies dispatched lesser vehicles to dealers in a bid to reduce inventory after a weak festive season, according to data released by the Society of Indian Automobile Manufacturers (SIAM). 

Auto Original Equipment Manufacturers (OEMs) also offered aggressive discounts to push sales before the end of the calendar year-end. However, this did not have the desired impact on volumes as customers were reluctant to go in for purchases due to a host of factors. Customers visibly postponed their purchases due to the rising price of fuel, higher insurance cost, which raised the upfront cost of ownership, and liquidity issues post NBFC crisis.

Particulars Dec-18 Dec-17 yoy
PV 2,38,692 2,39,723 -0.4%
Passenger Cars 1,55,159 1,58,338 -2.0%
Total 2W 12,59,026 12,87,766 -2.2%\\
Motorcycles 7,93,061 7,88,334 0.6%
3W 43,650 56,980 -23.4%
CV 75,984 82,409 -7.8%
TOTAL 16,17,352 16,66,878 -3.0%
(Source: SIAM data, IIFL research)
Passenger vehicles (PV) suffered a marginal decline in volumes in December 2018 while two-wheeler (2W) volumes declined 2% yoy. The slowdown was most pronounced in case of three-wheelers (3W) and commercial vehicles (CV), which declined 23% yoy and 8% yoy in volumes, respectively.

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