Indian Auto Industry Witnesses Sales Growth In May

By Ganesh

The Indian auto industry, which has been experiencing an extended slump in growth, showed first signs of revival this year during the month of May, with a growth of 13.22 percent across categories.

Vehicle sales went up to 16,98,138 units in May 2014 from 14,99,893 units during the corresponding month last year, as per data released by Society of Indian Automobile Manufacturers (SIAM).

Also Read: Indian Motor Vehicle Bill To Be Re-Drafted Soon

Car sales in particular, had fell by 5.08 percent in March and then again by 10.15 percent in April. As an encouraging sign, car sales in May grew by 3.08 percent, beating the dark clouds of the previous two months.

SIAM Director General Vishnu Mathur stated that sentiments of customers seemed to improve in May, with higher number of footfall conversion to actual car sales. He credited this improvement to the formation of the new government at the center and the reduction of excise duty, introduced during the interim budget.

However, he said that it was too early to rejoice as a single month's growth does not guarantee a long term revival of the automotive industry. As per a J.D. Power study, the industry will gain back its health with a 9 percent growth this year.

According to SIAM data, domestic passenger car sales in May stood at 1,48,577 units as against 1,44,132 units during the corresponding month in 2013.

In May, Maruti Suzuki grew by 12.35 percent (74,536 units against 66,342 units in May 2013); Hyundai grew by 12.18 percent (35,955 units against 32,052 units); Honda posted a growth of 18 percent (13,303 units against 11,274 units).

On the two wheeler front, the data reveals that the segment grew by 16.3 percent in May 2014 to 14,02,830 units from 12,06,173 units in May 2013.

Motorcycle sales went up by 11.71 percent to 9,84,469 units as against 8,81,288 units, while scooter sales grew by 34.48 percent to 3,57,564 units as against 2,65,892 unit sales.

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Read more on: #auto news
Article Published On: Wednesday, June 11, 2014, 11:30 [IST]
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