Car Sales Rise In July

Passenger car sales rose for the the third month last July. This is a good indicator of the growing economy after it recorded less than 5 percent growth for the past two years.

Automobile manufacturers announced last month that India's production activity has risen to a 17-month high on new orders.

As per the HSBC Manufacturing Purchasing Managers' Index, the digits rose to 53 in July compared to 51.5 in June. Other areas include the core sectors recording an expansion of 7.3 percent in June and exports recording 10.2 percent for the same month.

Also Read: Ford India Continues Its Steady Growth

The car manufacturers said these strong sales for the past three months is a signal of revival in the automobile market after a long two-year decline.

Maruti Suzuki contributed most to the growth recording a sales growth of 22 percent, selling 1,01,380 units from 83,299 sold in the past year.

The domestic sales went up 20 percent to 90,093 units from 75,145 units. The leader was the compact segment which include the Swift, Estilo, Ritz that increased 8 percent, selling 25,156 units. The compact sedan DZire went up 22 percent selling 18,634 units compared to last years 15,249 units. Maruti's exports had the biggest increase of 38 percent, selling 11,287 units last month.

Honda managed to inch past Mahindra in terms of sales ranking, and is now ahead of Toyota and Tata. Honda, with the help of its latest Mobilio, saw a 40 percent increase in sales with the City still being their best seller.

The Korean manufacturer and India's second largest manufacturer, Hyundai, recorded a 13 percent increase in sales.

While many companies recorded an increase in sales numbers, Mahindra's sales have declined 5 percent and Tata Motors recorded a 15 percent decline in their overall sales.

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