Car sales up 7% in July on last year's low base

Despite tough market conditions, car sales in India grew by 6.71 per cent during July, mainly on account of low base in last year due to strike at Maruti Suzuki's Manesar plant.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in July stood at 1,43,496 units as against 1,34,473 units in the same month last year.

"Car sales are growing mostly due to diesel models, which have also started seeing moderation in demand except for one or two models. This year's car sales growth has also been magnified by the low base of last year due to strike in Maruti," SIAM Director General Vishnu Mathur told reporters.

...

Country's largest carmaker Maruti Suzuki India had witnessed strike by workers at its Manesar plant in June last year that had severely hit production.

The ongoing lockout at Maruti's Manesar plant, which was declared on July 21, will start impacting the industry's numbers from this month and going forward, he added.

"There is nothing positive which has happened last month to spur growth, except for slight moderation in petrol prices. Otherwise, interest rates remain high and consumer sentiments are down," Mathur said.

...

He said the industry is "hoping that the new finance minister would take up steps so that there could be moderation of interest rates and the gap in the prices between petrol and diesel fuels is reduced so that demand can pick up again."

In the passenger car segment, market leader Maruti Suzuki's sales jumped by 8.32 per cent to 56,851 units.

Rival Hyundai Motor India's sales increased by 7.84 per cent to 27,500 units. Homegrown auto major Tata Motors' car sales were up by 51.13 per cent at 21,153 units.

However, sales of Toyota Motor Corp., Ford Motor Co., General Motors Co., Honda Motor Co., Volkswagen AG, BMW AG, Fiat SpA and Daimler AG's Mercedes-Benz declined in July.

...

In July, total sales of vehicles across categories registered an increase of 7.53 per cent to 14,46,959 units from 13,45,644 units in the same month last year.

Commercial vehicles sales grew by 1.20 per cent to 65,008 units during the month, from 64,234 units in the year-ago period, SIAM said.

"The real cause for concern is the CV segment. Both the medium and heavy commercial vehicles and light commercial vehicles are slowing largely because of overall economic slowdown," Mathur said.

...

Medium and Heavy Commercial Vehicle sales declined 14.84 per cent to 23,171 units during the month compared to 27,210 units in July last year.

According to SIAM, light commercial vehicle sales grew 12.99 per cent to 41,837 units in July 2012 from 37,027 units in July 2011.

In the three-wheeler category, sales went up marginally to 44,286 units from 43,948 units in the same month last year.