The Hindu Business Line : Cars, 2-wheelers sales shift gears in June

New Delhi, July 8 Passenger cars sales were on a fast track in June recording a 7.8 per cent growth at 1.07 lakh units. This is the highest growth after February in the domestic market.

The growth in sales has come from recently launched models such as the Maruti Ritz, Fiat Grande Punto and Honda Jazz.

Falling interest rates of public sector banks such as State Bank of India has also helped gain momentum in the market. The two-wheeler industry also saw its best month in terms of sales growth after July 2008. Sales grew by 17 per cent to 7.06 lakh units.

Seven out of 13 auto makers saw their passenger car sales go up in June against the same month last year. Maruti’s sales were up 11.7 per cent at 54,693 units.

Hyundai Motors sold 5 per cent more last month at 23,103 units. Tata Motors’ sales increased by 3 per cent. Honda and Fiat saw a healthy increase in their sales numbers with new models.

“The growth in passenger car sales is happening with new model launches. The commercial vehicle and some segments in the three-wheelers will be negative in the first half of the year. But may be in the second half of the year there could be some growth due to the very low base of last year in that period,” said Mr Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers, releasing the sales report.

For medium and heavy commercial vehicles, the low freight and slowing industrial production reflected in the monthly sales numbers.

Truck, bus sales fall

The combined sales of both trucks and buses fell by 31 per cent to 15,659 units. Goods carrier was the only segment which turned out to be an exception, lifting the overall sales of light commercial vehicles. Tata Motors and Mahindra’s sales boosted light commercial vehicle sales to 20,534 units — a growth of 10 per cent over the same month a year ago.

Overall, this category declined by 12.51 per cent to 36,193 units.

“Commercial vehicles sales are showing improving month-on-month basis even though it is negative (on a yearly basis). In two-wheelers and cars there is a focus on rural markets which is resulting in good sales,” said Mr S.P. Shah, President of the Federation of Automobile Dealers.

In two-wheelers, Hero Honda and Honda Motorcycles contributed to the overall sales growth.

Scooters sales also rose to 1.11 lakh units, a 24 per cent increase over the same period last year. Motorcycle sales were up 16.23 per cent at 5.50 lakh units.

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