SIAM revealed that the car sales in India boosted in September 2008 due to the festive season, rise in exports and tough competition among the leading car manufacturers.
According to the Society of Indian Automobile Manufacturers (SIAM), sales of passenger cars in India saw a rise of 2.84% in September 2008. The rise has been recorded for the first time in past three months, as reported by timesofindia.
In September 2008, car sales mounted to 1,08,823 Units as compared to 1,05,822 Units in September 2007. The sales of two-wheelers increased 14.51% to reach at 7,78,424 Units in comparison to 6,79,766 Units during the same period.
The major factor that induced growth into the car sales was the festive season. It encouraged consumers to purchase new vehicles in spite of the ongoing economic crisis that is adversely affecting the purchasing decisions of consumers all over the world.
Moreover, in contradiction to mostly financed urban sales, interior parts of India recorded 100% cash car sales. In fact, the sales of cars in rural and small town markets of the country favored the increasing figure of car sales. It is worth noting that car sales were declined in previous months because of the economic crunch, rising interest rates and mounting inflation.
Further, the cut-throat competition among the leading car manufacturers has also offered the consumers an easy opportunity to purchase new vehicles. Volume players like Maruti Suzuki and Hyundai led the growth in September 2008. Toyota too had recorded a significant growth triggered by the dispatch units of its recently launched Corolla Sedan.
The hike in car sales is also supported by rise in export of cars and sales of multi-purpose and utility vehicles that regained growth in September this year.
However, due to higher interest rates and liquidity crunch, consumers are not able to get easy finance. Thus, experts are dubious about any immediate improvement in the demand of new cars.
According to an Analyst at RNCOS, “Festive season triggered the growth of car sales in India, in September 2008. Moreover, easing liquidity is brining a change in the attitude of consumers. This is likely to take the sales up. Rising sales will get a boost from the heating competition among the leading car manufacturers who will govern the growth of Indian car industry.”
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