Car sales zoom 34% in October

Car sales zoom 34% in October

NEW DELHI: Car sales soared 34% in October, the fastest-ever growth in nearly three years as festive fever and cheaper interest rates perked


demand.

According to figures released by Siam, sales of passenger cars stood at 1.32 lakh units in October against 99,052 units in the same month last year.

The growth in October is the biggest percentage gain since February 2007, when it had jumped 46.5%. October is also the ninth straight month of growth in car sales and follows rise of 21% in September, 26% in August and 31% in July. Total vehicle sales, including two-wheelers, three-wheelers and commercial vehicles, grew by 16% to 10 lakh units against 8.65 lakh units in October last year, Siam said.

In car segment, the growth was led by Maruti, Hyundai and Tata — all of which recorded handsome gains. In all, a dozen out of the 16-odd carmakers saw demand going up, including Honda Siel, GM, Fiat and Ford. In the utility vehicle market, M&M continued its strong performance with a sales growth of 39%.

A slew of new models, especially in the small car segment, have also boosted demand. Total sales in the seven months of 2009-10 have grown 17%, making India one of the very few markets globally to record double-digit growth.

Analysts said growth rates were expected to remain healthy in coming months, though cautioning that a low base would make them appear more healthy-than-normal. Global economic turmoil had started to impact economies across the globe, including India, by this time last year.

Motorcycle sales were up 14% in October at 6.1 lakh units against 5.4 lakh units as companies like Hero Honda, Bajaj Auto and TVS recorded gains. Scooter sales were down 13% as segment leader HMSI struggled with a strike at the company's Manesar factory that brought down its production by almost 50%.

Commercial vehicle sales, the worst hit during the slowdown phase, were also healthy and recorded a growth of 52% at 42,562 units against 28,019 units last year.


MAYANKA FULORIA
PGDM 3rd