Sale of passenger vehicles in the country rose by almost 17 per cent last month compared with the year-ago period, driven by robust demand for utility vehicles.

According to data released by Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle sales, which included cars, vans and utility vehicles, stood at 2,59,685 units in July 2016 against 2,22,368 units in the same month last year.

“The new models in the UV segment have created a lot of excitement in the market. Also, the sentiment is positive due to better rains and coming of the 7th Pay Commission. All these factors put together are responsible for good sales numbers,” SIAM Deputy Secretary General Sugato Sen said.

Utility vehicles

Utility vehicle sales rose 41.85 per cent during the month to 64,105 units. “The passenger vehicles sales have grown at the fastest pace since October 2015 when it had posted a growth of 21.46 per cent,” Mr Sen said. Cars sales were up nearly 10 per cent to 177,604 units.

“It is after two months of decline that we have seen car sales grow in July. But still, the cumulative sales during the year remain sluggish. Customers are moving towards utility vehicles, including compact SUVs,” Mr Sen said.

As per data, total two-wheeler sales rose 13.52 per cent to 1476,340 units in July. Motorcycle sales were up 10.98 per cent and sale of scooters rose 16.66 per cent to 504,258 units during the month.

“Motorcycle sales, which have been impacted in rural areas for nearly three years now, witnessed some revival last month. Due to positive sentiment generated by good rains people have started buying bikes.

“Also, the sowing season has been good,” Mr Sen explained. Sales of commercial vehicles rose marginally to 51,853 units.

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