Because, SUV sales are growing strongly in June on the lower base

NEW DELHI: Sales of pbadenger cars rose 38% in June (year-on-year), even though actual volumes were the lowest in the last six months. Deliveries to dealers were unusually low in June last year, as companies held back inventories due to a reduction in manufacturing fees at the time of the GST that began in July 2017.

"People postponed their purchases last year during this period because they were expecting prices to drop after the GST rollout. Thus, the growth we are seeing this year is coming to a low level last year, "said Vishnu Mathur, general manager of the Siam Industrial Organization.

According to figures published by Siam, sales of pbadenger vehicles in June amounted to 2.7 lakh units against 2 lakh units during the same month of last year. The growth was fueled by high shipments from companies such as Maruti Suzuki, Hyundai, Tata Motors, Toyota and Honda. However, the combined volumes for pbadenger cars did not inspire in June and were the lowest since January 2018 when dealership deliveries were 2.8 lakh units.

Industry badysts attributed moderate volumes to the "monsoon phenomenon", where demand is generally slower. "Monsoons are tougher months, and sales are not easy without discounts and special diets." Customers also retain purchases in the hope of getting good deals in the festival months that start around of October, "said a senior official with a car company.