The Indian automobile industry ended the first month of 2005-06 with a 20 per cent year-on-year growth in volumes.
From a total vehicle sales of 5.5 lakh units in April 2004, sales in April 2005 moved to an impressive 6.62 lakh units. This growth was however overshadowed by a significant dip in the sales of commercial vehicles(CV).
Total CV sales in April 2005 fell to 16,879 units from 19,783 units in April 2004, according to the monthly flash report from Society of Indian Automobile Manufacturers.
Being a small portion of the total CV sales, passenger carriers recorded a 35 per cent drop in medium and heavy category.
However, despite having an 85 per cent share in the CV segment, goods carriers sales recorded a 19 per cent fall in the medium and heavy category and a nine per cent fall in the light category.
Though industry observers said that the fall in a single month's sales need not be a reason for hitting the panic button, attributed the decline in part to the non-availability of components, confusion over VAT implementation and partial implementation of BS-II norm in less than five states.
"There is also a good chance that a part of the April sales were booked as advance purchases in March this year," said an industry source.
Among the leading players in the CV-goods carriers section, Tata Motors reported the most significant drop by 31 per cent while Ashok Leyland reported a marginal increase of 7 per cent during April 2005. Eicher Motors, though is a small player in the market, reported a 24 per cent jump in sales during April 2005.
Though CV sales in April 2005 remained a cause for worry, other sections of the industry continued to report growth. Among the passenger carriers, motorcycle sales reported the highest growth at 26 per cent, helping the overall sales in the automobile industry report a 20 per cent jump. Total motorcycle and step-through sales in April 2005 was 4.38 lakh units against 3.48 lakh units in the same month last year.
Passenger car sales in April 2005 was up 13.64 per cent to 63,930 units. Utility vehicles reported a total sales of 13,793 units or 12 per cent more than that of April 2005.
Overall exports in the automobile sector in April 2005 recorded a 34 per cent jump over the same in April 2004. Exports from the Indian automobile sector in April 2005 was 59,007 units against 44,058 units exported in April 2004.