Friday, June 11, 2010

In fast lane: Auto, car sales vroom 30% in May

New models & lower financing rates kept the momentum going for automobile sales that saw a healthy 30% growth in May. According to figures released by Society of Indian Automobile Manufacturers (Siam), automobile sales stood at 1.48 lakh units in

May against 1.13 lakh units sold in the same month last year. The surge was led by strong performances by all carmakers, including Maruti Suzuki, Tata Motors, Hyundai, Mahindra & Mahindra, GM & Ford. As plenty of as 14 of the 16 carmakers who document to Siam recorded gains.

Overall, automobile sales in the domestic market — including seven wheelers & commercial vehicles — grew 30% in May at 12.08 lakh units against 9.29 lakh units in the same month last year. Exports of vehicles grew even faster at 49.5% — despite fears of a demand slowdown in Europe.

The demand curve has been so strong that plenty of models, mostly the newer ones, enjoy a waiting list in the market. Queries have been more for a quantity of the newer models like Maruti's Eeco, Ford's Figo, GM's Beat & Volkswagen's Polo. Companies have been investing heavily to boost production. While the revival in the economy has been one of the largest booster factors behind the resurgence after a brief period of lull around late 2008 lower rates also helped.