Car sales in India bounced back in urban centers In July riding on the cheaper loans, better corporate results and improved consumer sentiments after it has slipped about 10 percent in the previous year.
Major cities of India like Delhi, Mumbai, Bangalore, Cochin, Ahmedabad, Chandigarh, Calicut and Kolkata saw a growth in the car sales of 20 percent which usually constitute for 85-90 percent of the new cars sold in a year in the country.
Even the car manufacturers such as Maruti-Suzuki India, Hyundai Motor India and Toyota Kirloskar Motors acknowledge the fact for the first time that there is a surge in consumer footfalls at their city dealerships.
Car sales had fallen by 1.7% to 87,724 units in July last year after remaining in the positive territory for over two years. In fact, July-November 2008 period had seen a big drop in demand for new cars after urban customers deferred their buying decisions due to job uncertainty, a slowing economy and high interest rates. Car sales remained sluggish till the first quarter of this fiscal year, rising only 4% to 4.16 lakh units in the period.
Cheaper loans, improved consumer sentiment and better corporate results are the factors attributed for the urban turnout by leading car manufacturers like Maruti Suzuki, Hyundai Motor and Honda Siel Cars India.