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Indian Automobile Industry Sale Grew 9.8% Last Month
Jun 27, 2008

The Indian automobile segment experienced strong growth of 9.8% in April 2008 as the demand of vehicle increased in its every segment.

Starting of new financial year (April 2008) has yielded positive results for the Indian automobile industry as sales experienced 9.8% growth rate, says the Society of Indian Automobile Manufacturers (SIAM). It also revealed good show up by all segments including cars, commercial vehicles, motorcycles and three-wheeler, as reported by
The Times of India.

According to the SIAM data, the vehicle sales in the domestic market reached 806238 Units in April 2008 compared to 734103 Units in corresponding month last year. The car segment sales grew strongly with 17% rise to 98740 Units and the two-wheeler sales in April 2008 surged by 8% to 616038 Units against 570381 Units in the same month last year.

The government initiative to cut down excise duty on two and three wheelers to enable consumers afford them is largely accredited for growth in the Indian automobile industry in April 2008. Festival of Navratra and fear of price hike in automobile industry also boosted vehicle sales during April 2008.

Besides, the commercial vehicle segment of the Indian automobile industry witnessed the strong growth in April 2008 during the last three years (2005-07). Indian economy is growing at an unprecedented growth rate, leading to the development of industrial and transportation sectors that heavily depend on the commercial vehicles. Consequently, the demand for commercial vehicles is consistently growing. Seeing high growth in the Indian auto industry, many foreign players are getting into agreements with their Indian counterparts to tap the opportunities.

However, the industry experts predict that despite the good performance by the Indian automobile industry in April 2008, coming months will bring in difficulties for the industry, given that steel prices are increasing ultimately pushing up the input cost.

According to a research analyst at
RNCOS, “All the segment of the Indian automobile industry are growing at a rapid pace, encouraging car manufacturers to expend in the market. Given the current growth scenario, the Indian auto industry is offering huge growth opportunities for both manufacturers and dealers as the demand for vehicles is escalating in the country.”

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