Online BusinessRobust auto sales hold promise of good economic showing
Auto makers Maruti Suzuki, Hyundai and Hero Honda today reported robust sales in November, lending optimism that the good economic showing in the second quarter would continue.
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The country"s largest car maker Maruti Suzuki India said its domestic sales jumped by over 60 per cent, while that of rival Hyundai Motor"s zoomed 93 per cent, and Tata Motors by 45 per cent in November, just a day after government data showed that India"s economy clocked 7.9 per cent growth in the July-September quarter.
The sales growth witnessed by the biggies in November this year is a sharp reversal from what they experienced in the same month last year, when the Indian auto industry posted its biggest fall in history -- 17.98 per cent at 7,11,281 units.
Maruti Suzuki sold 76,359 units in the domestic market in November this year, while Hyundai Motor"s was at 28,162 units.
The Korean auto giant also reported highest ever total sales from India since starting operations 12 years ago at 55,265 units, up 28.46 per cent over the year-ago month.
Homegrown auto firm Mahindra & Mahindra reported an over two-fold jump in domestic sales of its utility vehicles last month at 15,193 units form 7,523 units during the same month last year.
Tata Motors" passenger car sales in November rose by 44.52 per cent in the domestic market to 20,706 units as against 14,327 units in the same month last year.
General Motors India reported a 65.27 per cent increase in sales in November at 7,118 units, the highest ever by the car maker in a month since its operations began in the country about 13 years ago. It had sold 4,307 units in the same month last year.
In the two-wheeler segment, market leader Hero Honda witnessed a healthy 32 per cent growth in sales at 3,81,378 units in November from 2,89,426 units in the year-ago period.
Chennai-based TVS Motors" total two-wheeler sales jumped by 23 per cent at 1,20,844 units as against 98,402 units in the same month last year.
Another bike maker India Yamaha Motor"s sales increased by 2.12 per cent to 17,055 units from 16,701 units in the corresponding month last year.
Suzuki Motorcycle India also reported 47.66 per cent jump in sales in November at 14,745 units, while its sales for the corresponding month last year stood at 9,986 units.
The growth witnessed in the auto industry follows the country"s economic growth that stood at a robust 7.9 per cent in the second quarter.
The manufacturing sector, which drew benefits of the two stimulus packages, expanded by a smart 9.2 per cent as against 3.4 per cent in the preceding quarter and 5.1 per cent in the second quarter of the last fiscal.
From last December through March 2009, the government had cut excise duty by 6 per cent and service tax by 2 per cent, besides stepping up plan expenditure to generate demand.