Car Sales Rise in May 2016
For the top three passenger vehicle manufacturers of India, sales figures advanced 10% for each. Reports suggest that sales of India’s passenger vehicles rose by 6.3 percent in May as new models of compact SUVs from car makers including Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. attracted more car purchasers to the showrooms.
The Society of Indian Automobile Manufacturers said in New Delhi that the delivery of passenger vehicles, which includes sport utility vehicles and vans climbed to 231,640 units. Sales have climbed for 11 months continuously in the third largest auto market in Asia, where compact SUVs continue to pull more buyers in spite of imposing additional taxes on passenger vehicle purchases by the government, starting from April. Mahindra has launched two new compact SUV models and has added engine options to retain its leading position in a segment which experiences intense competition which has increased with the launch of cars by Maruti Suzuki and Hyundai Motor Co. SUV sales across the Indian car industry last month jumped by 36 percent to reach 58,793 units. Car sales in India have been increasing at a steady rate month by month, being pioneered by the launch of new models coupled with a boost in the economy, low fuel costs and low interest rates.
Car Sales Rise
Sales figures for market topper Maruti Suzuki rose 10.6% to 113,162 units in May. The volume of sales was led by an 11% growth in compact car models, including the Swift, Celerio, Baleno and Dzire. Sales of these models increased to 46,554 units, up against 41,926 units a year back. But the overall demand for entry level cars has dipped, which reflects the changing preference of buyers which is tending towards more expensive and feature rich models. Sales of models such as the Wagon R and Alto dipped 5.6% to 33,105 units over the last year.
Hyundai Motor, the second largest car maker in India, by sales volume, also witnessed its figures advance by 10.4% to 41,351 units, as cars such as the Creta SUV and i20 retained their position. Rakesh Srivastava, the senior vice-president (sales and marketing department) at Hyundai Motor India Ltd said that the passenger vehicle market was estimated to have grown by an overall of 7.6% in May from a year ago. The growth, he pointed out, was mostly driven by the utility vehicles category that increased 28% against a small growth of 2% registered by other cars.
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Sales of utility vehicles at Mahindra and Mahindra Ltd increased by 10% to reach 18,648 units over the same month a year back, due to the demand for its new car KUV100 among the other models. This percentage was recorded despite the ban on large diesel cars in Delhi and its suburbs which led to some dip in sales.
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