Car sales skid in January; snap 14-month growth streak

New Delhi, February 12

Car sales in India fell for the first time after 14 months of continued growth in January as discounts dried up during the month with automakers correcting inventory at dealer levels post year-end freebies dole out.

According to data released by Society of Indian Automobile Manufacturers (SIAM), domestic car sales in January declined marginally to 1,68,303 units compared with 1,69,527 units in January 2015.

It is, however, bullish on the passenger vehicles segment to grow in the range of 8-12% in the next fiscal.

Overall passenger vehicle sales during the month grew marginally to 2,32,016 units in January as against 2,09,086 units in the year-ago period.

“There is muted growth in passenger car sales in January.

Growth declined as people advanced their buying to December due to record discounts offered by the companies. Also, there was correction at inventory levels during the month,” SIAM Director General Vishnu Mathur said.

He, however, termed the dip in passenger car sales a “temporary blip”. — PTI