Thursday, July 10, 2014
By Jitendra Singh
Sales of major car makers getting back on track according to SIAM report
India's monthly car sales increased 15% in June from a year ago, accelerating from 10 months of stunted growth, on improved consumer sentiment and a rush among buyers to avail of excise duty benefits. Passenger carmakers sold 160,232 units in June compared with 139,624 in the year-ago month, data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday showed. It was the biggest jump since August 2013, when sales had vaulted 15.37% year-on-year.
Car buyers were expecting the interim excise duty concession to end on June 30, but the government announced in the last week of the month that it would be extended till December 31, offering much needed relief to auto manufacturers who have been posting poor sales. In May, car sales had risen just 3% from the year-ago month. Industry players said consumer buying increased in anticipation of a price hike from July. "We witnessed some hectic buying in June as customers advanced their purchases last month," said Rakesh Srivastava, senior vice-president for sales and marketing at Hyundai Motor India. "We expect consumer sentiment to remain upbeat till the start of the festive season next month. Industry players said consumer buying increased in anticipation of a price hike from July.
"We witnessed some hectic buying in June as customers advanced their purchases last month," said Rakesh Srivastava, senior vice-president for sales and marketing at Hyundai Motor India. "We expect consumer sentiment to remain upbeat till the start of the festive season next month. Demand for new cars increases during the festive season next month. Demand for new cars increases during the festive season and new launches are expected to drive more customer traffic to showrooms from August onwards." The industry expects the traction to continue, as 30 new car models are lined up for launch in the coming festival months, when automobile sales in the country generally pick up on account of attractive discounts.
"After successive years of decline, we are expecting moderate growth in sales," SIAM president Vikram Kirloskar, who is also vice-chairman of Toyota Kirloskar Motors, told reporters. "While the prevailing weak monsoon conditions need to be monitored as we move ahead, a general upbeat mood in the market and a host of new launches may drive demand and push sales."
Read complete story at Economic Times.
