Indian automobile industry recorded 25% growth in domestic sales in April 2010, mainly due to easy financing options and launch of new models.
As per the Society of Indian Automobile Manufacturers, the good performance displayed by the auto industry of India in the second half of 2009-10 continued in the first month of the first month of the current fiscal, with the industry witnessing 25% increase in its domestic sales in April 2010, reported Business Line
In April 2010, total automobile sales in India stood at 1,120,081 Units, representing the highest sales growth for the month of April in last 11 years. Earlier, in April 1999, the industry had posted a growth of 50%.
Sales of passenger cars surged 39.48% to 143,976 Units in April 2010, while the overall passenger vehicle segment saw an increase of 34% in sales. Multi-purpose vehicles and utility vehicles are also included in the passenger vehicle segment.
Domestic sales of the leading car manufacturer Maruti Suzuki grew by 22.12% in April, whereas there was a growth of 28.15% for Hyundai Motors. Sales of Tata Motors’ increased by 76.41% during the month.
The key factors that helped the Indian automobile industry to maintain its growth trajectory of 2009 into the first month of this fiscal included the new launches in the compact car category, low base effect of last year and easy financing options.
Easier financing opportunities were particularly a major contributor in the growth of auto sales. Earlier, only a group of public sector banks offered easy finance to its customers, but now several private banks have also joined the league.
Moreover, with the economy showing signs of improvement for the last few quarters, customer sentiment is also improving, which led to good sales performance in April.
According to “Indian Automobile Sector Analysis
”, a market research report by RNCOS
, Indian automobile industry will grow further in coming years. Particularly, the sales of passenger vehicles will reach nearly 2.4 Million Units in 2012-13.
As per a Research Analyst at RNCOS
, “The sustained growth achieved by the Indian auto industry has grabbed the attention of international auto giants, including Nissan, Ford and General Motors. All these manufacturers are looking to produce smaller, more affordable models so as to tap the growing demand for cars in the third-biggest Asian economy. This promises a bright future for the auto industry in India.”
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