October car sales

Car sales soared 34% in October, the fastest-ever growth in nearly three years as festive fever and cheaper interest rates perked demand. According to figures released by industry body Society of Indian Automobile Manufacturers (SIAM), sales of passenger cars in the domestic market stood at 1.32 lakh units in October against 99,052 units in the same month last year. The growth in October is the biggest percentage gain since February 2007, when it had jumped 46.5%. October is also the ninth straight month of growth in car sales and follows rise of 21% in September, 26% in August and 31% in July. Total vehicle sales, including two-wheelers, three-wheelers and commercial vehicles, grew by 16% to 10 lakh units against 8.65 lakh units in October last year, Siam said. In car segment, the growth was led by the top three carmakers —Maruti, Hyundai and Tata —all of whom recorded handsome gains. In all, a dozen out of the 16-odd carmakers who report their numbers to SIAM saw demand going up, including Honda Siel, GM, Fiat and Ford. In the utility vehicle market, Mahindra & Mahindra continued its strong performance with a sales growth of 39%. Car sales have been on upswing over the last few months, boosted by government’s stimulus packages as well as softer retail finance rates. A slew of new models, especially in the small car segment, have also boosted demand. Total sales in the seven months of 2009-10 have grown 17%, making India one of the very few markets globally to record double-digit growth. Industry analysts said growth rates were expected to remain healthy in the coming months, though cautioning that a low base would make them appear more healthythan-normal. The global economic turmoil had started to impact economies across the globe, including India, by this time last year. Two-wheeler sales also remained buoyant. Motorcycle sales were up 14% in October at 6.1 lakh units against 5.4 lakh units in the same month last year as companies like Hero Honda, Bajaj Auto and TVS recorded gains. Scooter sales, however, were down 13% as segment leader HMSI struggled with a strike at the company’s Manesar factory that brought down its production by almost 50%.