After a strong April when car sales in India increased by 22%, they dampened in May according to local media reports.
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The Economic Times said sales growth was ‘sluggish’ at around 13-15% in May despite huge discounts from car makers and impressive sales of new models recorded in the past few weeks.
Passenger car leader Maruti Suzuki’s domestic sales increased 14.6% to 64,143 vehicles in May against 55,952 vehicles sold in the same month last year, the newspaper said.
The mid-car A3 segment, comprising the newly launched Swift Dzire and SX4, recorded 18.7% increase to 5,946 units, compared to 5,009 units last year.
Exports jumped 40% to 4,858 vehicles in May compared to 3,448 vehicles last year.
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By GlobalDataHyundai Motor India, had a good run on the back of its new hatchback, I10, which accounted for 30% of its total sales.
The company sold 10,627 units of I10. Its total sales increased 47% to 24,510 vehicles in May, as against 16,643 sold in May, 2007.
However, the report noted that for other car makers, May was a tough month.
Honda Siel Cars India’s (HSCI) domestic sales dipped 18% to 3,944 vehicles last month.
General Motors India’s sales dipped to a single digit for the first time in one year to 6.57% to 5,789 vehicles in May, against 5,432 vehicles last year.
The newspaper cited remarks by an analyst that suggest the slowdown will continue in the next few months.
“While April posted the highest sales in 2008, May showed sluggish demand. Rising inflation and interest rates are forcing customers to postpone their purchase plans,” said a Mumbai-based auto analyst of HSBC Capital and Securities Market.
