Indian Car majors Tata Motors Ltd., General Motors, Maruti Suzuki India Ltd. and Ford Motors have published huge profits as the car sales in India rose by 30.5% in May. This rise was mainly driven by availability of low interest loans and the introduction of new models of cars in the market.
Data issued by the industry lobby group, the Society of Indian Automobile manufacturers showed the rise in sales in the earlier month to 148,481 cars vis-à-vis 113,810 during may last year.
Maruti Suzuki continues its reign as the market leader with its series of hatchback models which have raised the sales for the company. The popular models of hatchbacks are Ritz, Swift and A-star. Coming in second is Hyundai motors with its i10 and i20. New entrants Figo by Ford, Chevrolet Beat by GM and Polo by Volkswagen also witnessed increased demands.
India being Asia’s third largest market for automobile was affected by the recession in 2008 which drastically reduced the car sales in India. However since the early 2009, with the economy recovering gradually coupled with the government stimulus has resulted in the recovery of car sales.
The SIAM’s director Vishnu Mathur has stated that “Purchasing power is going up”. “The recent data shows per capita income has touched $1,000, which is supposed to be a magical figure for the automobile sector. This is the threshold level world over after which automobile sales start rising.”
India has witnessed the increase in car sales while compared to the previous year since January this year. January saw a 32% rise in sales followed by 33% increase in February and finally 39% in April.
Maruti Suzuki alone had an increase of 21% in sales having sold 76,120 cars in May. Maruti Suzuki, in its race to retain the control of the majority of the Indian market has even given the WagonR a face life and launched the new version in April this year. Maruti Suzuki currently manufactures and sells seven models of small cars.
The second place is taken by Hyundai which has seen an increase of 15.5% in sales compared to last year and as sold 27,151 cars in May.
Ford Motors has also seen an increase in their sales figures with the release of Figo, which is the company’s first small car in India. Figo was introduced in March and since then the company has witnessed fourfold increase in their car sales with a total of 7,820 cars being sold.
Chevrolet Beat and Spark have also improved the sales numbers of General Motors with sales of 6,712 cars and percentage increase of 72.5%
I a recent note the analysts from Edelweiss securities Ltd, Chetan Vohra and Deepak Jain have stated “We expect fiscal year 2010-2011 demand to remain strong on the back of robust economic growth”.
“Commercial vehicles could continue to march upwards, whereas passenger vehicle and two-wheeler volumes, while being robust, could slow down year-on-year relatively on a higher base.”
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