Comments
January car sales reflected a rise for the third consecutive month, raising recovery hopes in an industry which has seen numbers fall steadily between July and October 2011. Discounts from automakers, increased demand for diesel cars and new launches have done the trick in the turnaround.
Passenger car sales touched 1.96 lakh units in January, a seven per cent increase over 1.83 lakh units sold in the same month last year, according to data released by the Society of Indian Automobile Manufacturers.
Market leader, Maruti Suzuki, recorded sales growth of two per cent at 88,377 units (86,285 units), the first monthly rise since May last year.
On a cumulative basis, passenger car sales in April-January 2012 were down one per cent to 15.75 lakh units (15.94 lakh units). If this declining trend persists over the next two months, it would be for the first time since 2002 that annual car sales will have seen a drop, say industry analysts.
“The car industry is very sensitive to interest rates and we do not see them coming down quickly,” Mr Vishnu Mathur, Director General of SIAM, told reporters here. Unless sales grow in February-March at 10-12 per cent, which is unlikely, the industry will miss its earlier projections, he added.
High interest rates have deterred buyers in recent months. The Reserve Bank of India had since March 2010 raised policy rates 13 times to tackle inflation.
Car exports recorded robust growth in January 2012 at 47,103 units, up 45 per cent over 32,515 units exported in same month last year. On an aggregate basis, car exports registered 21 per cent increase in April-January 2012 to 4.16 lakh units (3.44 lakh units).
Motorcycle sales up 10%
Meanwhile, motorcycle sales grew 10 per cent to 8.25 lakh units in January 2012 from 7.47 lakh units in the same month last year. Total two-wheeler sales increased 14 per cent to 11.14 lakh units from 9.80 lakh units in the same month last year.
Commercial vehicle sales were up 19 per cent increase in April-January 2012 at 6.42 lakh units (5.41 lakh units).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.