Increasing spending power and excitement created by model launches helped major automakers report robust growth in August sales on Wednesday with market leader Maruti Suzuki witnessing best ever monthly dispatches.
Automobile sales, which are usually down in the rainy season, continued to cruise with major firms, including Hyundai, Tata Motors and Hero Honda posting healthy sales in August, due to increased consumer confidence on the booming economy.
During the month, Maruti Suzuki posted its highest ever monthly sales at 1,04,791 units, a 23.56 per cent increase from 84,808 units in August 2009. The company also posted its best figure so far for the domestic market at 92,674 units, a 32.47 per cent increase from 69,961 units in August 2009.
“With economic activities going strong, consumers’ spending powers have increased. It has helped boosting auto sales,” IDFC Securities Director (Research) Ramnath S told PTI. New models by the companies have also created excitement in the market and many of these have witnessed long-waiting periods for delivery, he added.
The country’s second largest carmaker Hyundai Motor India also reported 17.21 per cent jump in its domestic sales at 28,601 units as against 24,401 units in August 2009.
Commenting on the sales, Hyundai Motor India Director (Marketing and Sales) Arvind Saxena said the market continues to be positive and the company expects the trend to continue with the onset of the festive season.
Homegrown auto major Tata Motors reported a 45.10 per cent increase in its domestic passenger vehicle sales at 25,196 units compared to 17,364 units in the year-ago month.
Another manufacturer Mahindra & Mahindra’s sales in domestic market jumped by 27.39 per cent last month at 27,275 units as against 21,410 units in the same month last year.
Carmaker General Motors India saw its sales climbing 33.71 per cent to 7,941 units in August compared to 5,939 units in the same month last year. Honda Siel Cars’ sales stood at 5,532 units, registering 38.75 per cent jump over 3,987 units in the corresponding month last year.
Another auto maker Toyota Kirloskar Motor reported 26.09 per cent jump in its sales at 6,361 units compared to 5,045 units in the corresponding month last year.
Mr. Ramnath said the growth momentum is expected to continue in future up to the festive season. “There is a spill-over of demand... The festive season will be very good this time,” he added.
