The Indian car market has done well consecutively for the fifth month in June. This is mainly due to lower lending rates and the introduction of new models from the car manufactures.
In a data issued by the Society of Indian Automobile Manufacturers industry group, car sales in June rose to 7.8%. About 1,07,531 were cars sold against the 99, 741 cars in the previous year.
Higher borrowing costs and a slowing economy has reduced the demand for cars in Indian car market last year. But sales began to recover with the commencing of the New Year because of tax cuts from the federal government and a lowering of interest rates by financial organisations.
Market analysts opine that the rising trend in vehicle sales will only be confirmed when auto makers report a gradual positive trend in volumes over the next couple of months.
Carmakers have launched several new small cars and sedans in the market since January to win over more customers. Maruti Suzuki rolled out its seventh small car model, the Ritz, in May as it worked to maintain its leadership in the expanding market. Sales of Maruti Suzuki India Limited gained 12% to 54,693 cars as it sold more A-Star, Ritz and Swift cars. Fiat India introduced Grande Punto last month, with the company lifting car sales to 2,464 units in June from 500 a year earlier.
India's second largest carmaker Hyundai posted a 5.2% rise to 23,013 cars, while Tata Motors rose 3.2% to 13,732 cars. Sales at Honda increased 13.5% to 5,039 cars in June, boosted by the introduction of the Jazz.