Friday, August 10, 2012
By Shilpa Chopra
Car sales in July register 6.71 percent growth
Nobody seems to assess the Indian car industry in the right manner. In July the overall sales remained up by 6.71 percent compared to the same period last year despite of meek conditions prevailing. Industry experts believe that the growth projection in this period is following the Manesar outage last year following which Maruti Swift and Maruti Swift Dzire production came to a pause. Experts also believe that next year July will also have an increase as the production at Manesar was again at halt in this period. Notably these two cars contribute a major chunk to the overall car sales along with Maruti Alto that is the best selling car in India.
Another striking fact that the July sales predict is the stagnation in the demand for diesel cars. No doubt, the diesel car demand has increased manifold in the past one year, but in July the demand of diesel cars has been mostly for one or two models and these could be the Swift and Swift Dzire. Since these two models have been out of production, the some demand must have shifted to other cars such as recently refreshed new Mahindra Verito and Tata Indigo eCS that is offering huge discounts. It is expected that since the lockout at Manesar continues, this will impact the overall car sales in India. Besides, though there was an interest rate breather by the RBI recently but that was only for the name’s sake only and the interest rates are still higher than ever.
In July, Maruti has shown a positive trend, Tata has been in green following boost in sale of Tata Indica and Tata Indigo eCS sedan that returns a mileage of 25 kmpl. Meanwhile, the total car sales in India remained at 14.46 lakh units with an increase of over 7.53 percent over the same period last year.