Vehicle demand to slideVehicle demand in the subsequent months is likely to slide
Apnaloan.com Research Bureau
11 Jun 2008
Despite a 14.25 per cent growth in automobile sales for the month of May, demand in the subsequent months is likely to slide due to rising interest rates, steep fuel costs and the onset of monsoon.
According to figures released by the Society of Indian Automobile Manufacturers (Siam), more than 1.10 lakh units were sold thanks to demand for small cars. Sales in the corresponding month last year stood at 96,923 units.
The growth during the month, which was attributable to buying in anticipation of price hikes, may not last beyond the current month as most leading manufacturers have already increased prices.
During the month, Maruti Suzuki posted a growth of 14 per cent, at par with the industry standard.
The Company witnessed the demand for its cheapest car Maruti 800 grow by 25 per cent in addition to demand for the Wagon R LPG variant.
Hyundai Motors, which sold less than half of the total units sold by Maruti Suzuki, saw sales jump by 47 per cent courtesy to the i10.
The passenger vehicle segment was also assisted by strong demand for utility vehicles like Tata Safari, Mahindra Scorpio and multi-purpose vehicles such as Chevrolet Tavera and Toyota Innova. Sales in the segment (cars, utility and multi-purpose vehicle) grew by 16.58 per cent at 141,946 units as compared with 121,753 in 2007.