Car sales zoomed 38 per cent with 1.82 lakh vehicles being sold in October this year, the fifth consecutive month of buoyant gains, a trend automakers expect to continue because of a growing economy and lower borrowing costs.
New cars such as Maruti Suzuki’s revamped WagonR, Ford’s Figo, Polo from Volkswagen, Nissan Motor’s Micra and an upgraded i10 from Hyundai propelled demand during the Dussehra-Diwali period, considered an auspicious time to make new purchases.
Analysts tracking the auto industry said that the current momentum is likely to continue with the comparatively low penetration level of vehicles in India likely to drive growth in the long term.
The industry body, Society of Indian Automobile Manufacturers (SIAM) revised its sales projections and now expects the industry to grow around 20 per cent this fiscal. However, in contrast to the automobile manufacturers, it expects sales to slow down during the rest of the fiscal.
“We have witnessed higher 46 per cent growth in October on the back of strong festive demand, but in the coming months the base effect could moderate this growth as sales are normally sluggish in the third quarter as customers prefer to buy cars in new year,” said SIAM director general Vishnu Mathur.
SIAM now expects car and sport-utility vehicles sales to grow 21-23 per cent to 2.4 million vehicles this year, up from an earlier forecast of 12-13 per cent growth. According to carmakers the festive season is expected to spill over to November keeping the sales momentum going.
“The overall fundamentals of the industry are strong. With interest rates continuing to be favourable and flexible availability of financing, we are expecting bumper sales in November too,” Maruti’s chief general manager (marketing) Shashank Srivastava said.