Motown registers growth, shrugs off excise rollback
The domestic passenger vehicle industry started the year on a positive note, registering a 3.17% growth in sales in January 2015, shrugging off withdrawal of excise concessions in December, which made vehicles expensive by at least 4%.
Domestic passenger car sales in January grew by 3.14% while utility vehicles and SUVs grew by 6.3% soothing the industry that in November was staring at a third consecutive annual dip in sales for 2014.
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"The 3% growth is not huge on face value, but after the withdrawal of excise concessions we thought sales might decline. To that extent it is positive for the industry," said Sugato Sen, deputy director general, Society of Indian Automobile Manufacturers. "In the April-January period, sales have grown by 3.62% and we now expect it would stay in the region of 3-5% for the fiscal that ends on March 31."
Total two-wheeler sales also witnessed a growth of 1.07%, pulling the overall growth of the sector at 1.66%. Motorcycle sales, however, declined by 5.85%.