Breaking a three-month decline, passenger vehicles have registered a marginal 1.55 per cent rise in sales in October even as firm fuel prices and high insurance premiums held back buyers.

According to latest data released by the Society of Indian Automobile Manufacturers (SIAM) on Friday, passenger vehicle (PV) sales in October stood at 2,84,224 units against 2,79,877 units in the year-ago month.

In July, August and September PV sales had declined 2.71 per cent, 2.46 per cent and 5.61 per cent, respectively.

During the reporting month, car sales grew marginally by 0.38 per cent to 1,85,400 units from 1,84,706 units in the same month last year.

“The slow growth is mainly due to base effect besides other factors such as increase in insurance premium, high fuel prices and muted sentiment because of a weak stock market,” SIAM director general Vishnu Mathur said.

“The real impact of festive sales will be known only next month as Diwali was in November this year. However, till the end of October, sales have been slow and it wasn’t like festive season,” he said.

Telegraph infographic

According to Mathur, the growth in PV sales seen in October indicates the overall trend in the automobile industry.

Vehicle sales across categories in October registered a growth of 15.33 per cent at 24,94,426 units against 21,62,869 units in October 2017.

Mathur, however, said SIAM is maintaining its growth forecast for PVs at 7-9 per cent for the full financial year.

In the April-October period for this fiscal, total PV sales have grown 6.10 per cent to 20,28,529 units against 19,11,883 units in the year-ago period, SIAM said.

According to SIAM deputy director general Sugato Sen, October PV sales met expectations and the industry body expects it to pick up further in the remaining part of the fiscal.

During the month, market leader Maruti Suzuki posted a marginal growth of 0.61 per cent in PV sales at 1,35,948 units. Rival Hyundai Motor also posted a 4.87 per cent increase at 52,001 units. Mahindra & Mahindra posted a 2.75 per cent increase in PV sales at 24,056 units.