New Delhi : Riding high on festive demand, car sales grew at a brisk pace with the market leader Maruti Suzuki India and rival Hyundai Motor India posting their best-ever monthly dispatches in October. Honda Cars India, Mahindra & Mahindra and Tata Motors also saw sales rise.
Industry experts cited lower interest rates, stable fuel costs and festive season offers as reasons for pick-up in demand.
Maruti Suzuki India (MSI) said its domestic sales surged by 24.7 % during the month to 1,21,063 units as against 97,069 units in October last year.
“With new models and product refreshments, we are upbeat on the festival season. In anticipation of good retail sales during this time, we have adequately prepared our network. This is the company’s highest-ever domestic and total sales number.” MSI Executive Director Marketing and Sales R S Kalsi told PTI.
Sales of the company’s small cars including, Alto and WagonR increased by 5.2 % to 37,595 units.
Dispatches in the compact segment comprising Swift, Estilo, Ritz, Dzire and recently launched Baleno rose by 37.7 % to 51,048 units. Rival Hyundai Motor India also saw its highest-ever monthly domestic sales at 47,015 units last month compared with 38,010 units in October 2014, up 23.7 %. “Hyundai sales of 47,015 units are all-time high with an all-time high sales of Grand i10 at 14,079 units and continued strong performance of modern premium brands Creta and Elite i20/Active,” HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said.
Mahindra’s domestic sales were up 21 % 48,815 to units last month as against 40,278 units in October last year.
“With the drop in interest rates and the fuel prices remaining benign, we expect the industry to maintain a good growth momentum going forward,” M&M Chief Executive (Automotive Division) Pravin Shah said.
Tata Motors domestic passenger vehicles sales were up 11 % at 12,798 units in the period under review compared with 11,511 units last year.
In the two-wheeler segment, India Yamaha Motor posted a 29.43 % increase in domestic sales at 70,800 units as against 54,698 last year.
However the demand will not be sustainable after Diwali if distress continues in the rural economy, warned industry experts.