New Delhi: Cheaper lending rates in the country along with the government's booster via tax cuts seem to have had little effect on vehicle sales in January, with car sales decreasing by over 14,531 units, or slightly over 8%, compared to January last year.
According to Rajan Wadhera, President of industry body Society of Indian Automobile Manufacturers (SIAM), which gives out the auto sales numbers, the overall slump in vehicle sales in India was due to the "rising cost of vehicle ownership and slower growth in GDP".
Barring three-wheelers, all other segments showed de-growth.
Vehicle sales across segments have been declining for over a year now. SIAM sales data last month compared with that of January 2019 showed that domestic passenger vehicle sales slipped 6.2% to 262,714 units. The decline in car sales stood at 8.1%, and two-wheelers 16.06%.
Sales of commercial vehicles, an indicator of industrial health in the economy, slipped by 14.04% to 75,289 units last month, while the vehicle sales across categories registered a de-growth of 13.83% to 17,39,975 units from 20,19,253 units in January 2019, SIAM said.
Motorcycle sales last month declined by 15.17% to 8,71,886 units from 10,27,766 units a year earlier, it added.
Total two-wheeler sales in January fell 16.06% to 13,41,005 units as compared to 15,97,528 units in the same month last year.
However, Wadhera said, they were hopeful that recent government announcements on infrastructure and rural economy would support growth of vehicle sales, especially in the commercial and two-wheeler segments.
"We are looking forward to the early announcement of an incentive-based scrappage policy in the context of the recent assurances by the government," Wadhera said.