Sales in December 2016 were down by 2.1% y/y to 281,790 units versus 287,799 units in December 2015. PVs (passenger vehicle, UV and van) sales were down 1.4% y/y to 227,824 units. CVs (M&HCVs and LCVs) sales were down 5.1% y/y to 53,966 units.

By vehicle types, passenger vehicle sales were down 8.1% y/y to 158,617 units versus 172,671 units in the year previous. Utility vehicle (UVs) sales were up 29.9% y/y to 58,309 units. Vans sales were down 18.8% y/y to 10,898 units. Medium and heavy commercial vehicle (M&HCV) sales were down 12.4% y/y to 22,788 units. Light commercial vehicle (LCVs) sales were up 1.2% y/y to 31,178 units.

Among automakers, Maruti-Suzuki was down 4.4% and Hyundai was down 4.3%. Tata Motors was up 1% and Mahindra sales were down 1.5% in December 2016.

Passenger and commercial vehicle sales were influenced by weak rural demand, short term effects of demonetization, and rising fuel prices which leads to reduced and postponed purchase decisions. However, it is expected that there will be a gradual pick-up in demand starting in the next few months due to implementation of GST, Budget announcement, and reduced inflation and interest rates. Sales of commercial vehicles are expected to increase due to pre-buying of BS III norms trucks.

 (Based on data released by SIAM on January 10,2017)