July car sales up 6.7%

The Indian auto sector braved existing turbulent economic conditions to post a growth of 6.71% in cars while the two wheeler segment registered 4.97 % in July 2012.

Figures released by the Society of Indian Automobile Manufacturers (SIAM) state that 1,43,496 units (cars) were sold in July as against 1,34,473 units (cars) while as many as 8,21,821 units(bikes) were sold as against 7,82,852 units (bikes) in the same month last year.

Citing the strike at the Manesar plant of Maruti as major influencer in the four wheeler segment, SIAM Director General Vishnu Marthur said that sales were still up only due to diesel cars (see chart).“This year’s car sales growth has also been magnified by the low base of last year due to strike in Maruti,” he said.

Bike sales recorded its lowest numbers since March 2012 (1.15%). Hero Motor recorded sales of  4,36,994 units while Bajaj Auto’s sales declined marginally to 2,00,535 units with TVS Motors recording sales of 36,461 units. Respite came from Honda Motorcycle, which posted a 95.86 % rise in sales to 1,01,692 units.

Pinning their hopes on P Chidambaram taking over as the Finance Minister, SIAM called for the new FM to take steps to moderate interest rates and bring down difference in price between vari ants to increase demand.