Latest Car News in India

Thursday, September 11, 2014

By Jitendra Singh

Growth in car sales continues during the fourth month

Car sales grew more than 15 per cent in August, the fastest pace so far this fiscal year, helped by big discounts and new launches and also clearly signaling improving consumer sentiment as the festival season begins. The local auto market has not exactly come to its real potential, but data released on Wednesday by the Society of Indian Automobile Manufacturers reflect positive sales across most segments of vehicles. The numbers, especially an expansion in commercial-vehicle sales, also strengthen expectation of a turnaround in the economy after two years of sub-5 per cent growth. The numbers, especially an expansion in commercial-vehicle sales, also strengthen expectation of a turnaround in the economy after two years of sub-5 per cent growth. With an array of recent launches in the passenger-vehicle segment, and more in the pipeline during the ongoing festival season, demand is expected to improve further in the usually buoyant fiscal second half starting next month. 
 
"We have witnessed the fourth successive monthly gain (in car sales) that is creating an impression that customers are returning to the market and sales are likely to stablise. We are not issuing any forecast, but the car segment should end the fiscal year with high single-digit growth," Siam director-general Vishnu Mathur said. "Other (vehicle) categories are also reflecting the change in market sentiments with positive growth last month." The major performers in August were larger carmakers such as Maruti Suzuki Hyundai Motor and Honda Cars India, which together accounted for as much as 80 per cent of sales reported by manufacturers in the passenger-vehicle segment. Maruti posted growth of more than 29 per cent to sell 98,304 units in the domestic market, ahead of Hyundai that sold 19 per cent more vehicles then the previous month at 33,750 units. At Honda, car sales rose as much as 88 per cent.
 
New models launched in recent weeks, such as the Honda Mobilio and Hyundai Elite i20, helped sales last month. Maruti's new Ciaz sedan and Tata Motors' Bolt hatchback are likely to bring more customers to the dealerships in the coming weeks. A sweet spot for the industry was a remarkable recovery in heavy commercial vehicle sales, with a 9.61 per cent expansion last month. Considered a barometer of economic growth, commercial-vehicle sales were last positive in February 2011, when the domestic market grew 5.53 per cent year-on-year. A sweet spot for the industry was a remarkable recovery in heavy commercial vehicle sales, with a 9.61 per cent expansion last month. Considered a barometer of economic growth, commercial-vehicle sales were last positive in February 2011, when the domestic market grew 5.53 per cent year-on-year.
 
Courtesy: Economic Times

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