Passenger vehicle sales in India crossed the three million milestone for the first time in 2016-17, with the segment witnessing a growth of 9.23 per cent.
For the fiscal ended March 2017, domestic passenger vehicles (PV) sales were at 30,46,727 units against 27,89,208 in the previous year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
On the sales performance, SIAM Deputy Director Sugato Sen said the year witnessed the highest sales of passenger vehicles, utility vehicles, motorcycles and scooters.
“In terms of passenger vehicles, we crossed the three million mark for the first time,” Sen told reporters here.
“The growth in PV sales is driven largely by demand for utility vehicles ahead of sedans and hatchbacks,” he added.
During the year, utility vehicle sales were at 7,61,997 units against 5,86,576 units in the previous fiscal, a growth of 29.91 per cent.
“This is the highest growth rate achieved by the UV segment after 2013-14 when it grew by 52 per cent,” Sen said.
SIAM Director General Vishnu Mathur said there is a readjustment happening in the Indian passenger vehicle market with demand for utility vehicles rising at a much faster rate ahead of conventional cars.
Domestic car sales during the year grew 3.85 per cent to 21,02,996 units from 20,25,097 units in the previous year. This was the lowest growth since 2014-15, when car sales rose 5.09 per cent.
Maruti Suzuki’s Vitara Brezza, Hyundai’s Creta, Renault Duster, Mahindra Scorpio and Ford Ecosport are among the popular SUV models in India at present.
Mathur said the industry has been able to grow despite challenges of ban on big diesel SUVs and cars in the National Capital region and demonetisation.
“As for demonetisation, the impact was for only two months on the PV segment and recovery was quick, but it was prolonged in the two-wheeler segment,” he said.
In 2016-17, market leader Maruti Suzuki India retained its top position in the domestic PV space selling 14,43,641 units, a growth of 10.59 per cent.
Rival Hyundai Motor India was a distant second with 5,09,705 units, up 5.24 per cent followed by home-grown Mahindra & Mahindra in the third spot with 2,36,130 units, down 0.07 per cent.
Tata Motors overtook Honda Cars India to occupy the fourth spot with 1,72,504 units, up 15.45 per cent, while the Japanese rival sold 1,57,313 units during the year, down 18.09 per cent.