Automobile sales showed signs of recovery in May as the launch of new models and purchases related to the election campaign helped spark demand in a market where sales dropped for 18 months in a row.
Maruti Suzuki India Ltd, the country’s largest car maker by sales, reported a 16% increase in its domestic sales in May from a year earlier. The local arm of the Japanese car maker sold 90,560 units last month, up from 77,821 units a year ago, it said in a statement on Monday. Other manufacturers also reported sales increases.
To be sure, year-on-year growth in sales looks stronger because of a low base effect. In May 2013, auto sales dropped 12% as a slump in economic growth, high borrowing costs and fuel prices weakened consumer sentiment. In the year ended March, passenger vehicle sales posted the first decline in 10 years.
“Considering the steep drop in passenger car sales we saw in 2013, even marginally better sales will translate into big volume gains. Hence some uptick is not surprising,” said Deep Mukherjee, senior director at India Ratings and Research Pvt. Ltd...
Maruti Suzuki India Ltd, the country’s largest car maker by sales, reported a 16% increase in its domestic sales in May from a year earlier. The local arm of the Japanese car maker sold 90,560 units last month, up from 77,821 units a year ago, it said in a statement on Monday. Other manufacturers also reported sales increases.
To be sure, year-on-year growth in sales looks stronger because of a low base effect. In May 2013, auto sales dropped 12% as a slump in economic growth, high borrowing costs and fuel prices weakened consumer sentiment. In the year ended March, passenger vehicle sales posted the first decline in 10 years.
“Considering the steep drop in passenger car sales we saw in 2013, even marginally better sales will translate into big volume gains. Hence some uptick is not surprising,” said Deep Mukherjee, senior director at India Ratings and Research Pvt. Ltd...
Source: Automobile Industry News
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