New Delhi, Dec 11 Festive season discounts coupled with attractive gift packages boosted the passenger car sales in the country with the segment witnessing a growth of 16.42% at 1,03,031 units sold during November. In contrast, the two-wheeler industry posted a 2.07% dip in sales with the motorcycle segment being the worst performer, thanks to the unavailability of credit finance.

It witnessed a negative growth of 2.89% at 5,40,553 units sold in November as against 5,56,612 units sold during the same month last year. However, scooters posted a marginal growth of 0.28% with 89,078 units sold during this period. “With high delinquency in areas like UP, Rajasthan and Punjab, banks are either cutting down on two-wheeler loans or raising the interest rates to compensate for the higher rate of defaults and this has led to the declining sales of motorcycles in the country,” said a banking official.

According to figures released by the Society of Indian Automobile Manufacturers (Siam), while the country’s largest car manufacturer Maruti Suzuki India Ltd (MSIL) posted a growth of 27.37% at 57,554 units sold, Hyundai Motors India Ltd (HMIL) registered a growth of 15.47% at 19,041 units sold during this period. Even sales at General Motors’ went up by a robust 304% at 3,653 units as against a mere 903 units sold during the same month last year. However, Tata Motors and Honda Siel Cars India Ltd posted a negative growth of 21.39% and 7.72% respectively.

In the motorcycles category, while market leader Hero Honda Motors posted a growth of 3.47% at 2,71,251 units, arch rival Bajaj Auto was down by 8.97% at 1,74,936 units compared to 1,92,182 units last year. TVS Motor Co sales dropped by 22.46% at 48,345 units in November compared to 62,350 units in the same month last year.

According to an industry expert, the ailing motorcycle segment might see some correction post the ninth Auto Expo where all major players are expected to showcase either their upcoming models or the variants of the existing one and that may trigger a growth in the two-wheeler industry.

Commercial vehicle sales during the month rose marginally by 0.38% at 40,466 units, against 40,313 units for the corresponding period last year. However, the cumulative growth for the entire industry during the period between April-November declined by 4.34% at 64,62,914 units. While sales of the passenger vehicles went up by 13.93% at 9,93404 units, that of the two-wheelers dipped by 7.64% at 49,23,928 units.