New Delhi, Aug. 1: Car sales grew for the third consecutive month in July, signalling a revival in the market.
While most companies posted an increase in sales, Ford India, which had managed to do well even when the market was in the doldrums, saw a slight decrease in numbers.
Maruti Suzuki India reported a 19.9 per cent growth in sales at 90,093 units in July against 75,145 units in the same month last year. Sales were driven by the compact segment, which rose 81.2 per cent to 25,156 units from 13,882 units in July last year. Sales of the compact sedan Dzire rose 22.2 per cent to 18,634 units from 15,249 units a year ago.
Sales of rival Hyundai Motor India grew 12.69 per cent to 29,260 units from 25,965 units last year.
“The green shoots of growth are visible with the stabilisation of macro-economic factors and near-to-average monsoons,” Hyundai Motor India senior vice-president (sales and marketing) Rakesh Srivastava said.
He said the demand pull created by the product launches had brought down the discounts.
Honda Cars India Ltd reported a 39.97 per cent increase in sales at 15,709 units compared with 11,223 units a year ago.
“The company’s latest Mobilio has received good response from the market with over 10,000 bookings since its launch,” senior vice-president (marketing & sales) Jnaneswar Sen said.
Toyota Kirloskar Motor’s domestic sales stood at 11,921 units against 11,515 units, up 3.52 per cent.
Ford India, however, saw a 3.49 per cent fall in sales at 7,592 units against 7,867 units a year ago.
“There are several indicators to suggest a gradual revival in customer sentiment in the past few months, including cues from the stock market and a steady improvement in manufacturing index,” Ford India executive director (marketing, sales and service) Vinay Piparsania said.
Car sales had fallen for the second consecutive fiscal in 2013-14, with a drop of 4.65 per cent, as the industry continued to grapple with a demand slump because of a sluggish economy.
According to industry players, since the formation of the new government, consumer sentiments have improved leading to a rise in demand.