Motown: August 2014

Improved consumer sentiments and positive economic climate are fuelling demand for new cars. Car sales continued their positive momentum and moved up for the fourth month in running, shrugging off two years of despondency when numbers had slipped into the negative. Car sales rose 15% in August, recording volumes of 1.53 lakh units against 1.33 lakh units in the same month last year.
Companies say that rising confidence in the Indian economy is fuelling the positive run, which is also expected to be continued in the upcoming festive season, the most important period for consumer sales.The surge is also driven by attractive discounts, though they have cooled down in the last few weeks.
New models are also pumping up the numbers and these include Xcent entry sedan and i20 from Hyundai and Mobilio MPV from Honda.Hyundai said its i20 had received 20,300 bookings in just a month since its launch on August 11.
Industry officials, however, remain cautious on a full recovery and say this will happen gradually .
A positive factor is the upward trend being noticed in the sales of medium and heavy commercial vehicles good category . The goods carrier sales were positive for the third month in a row and grew 20%.

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