For the month of June 2014, passenger vehicles volumes continued to be on a strong footing. While the ground realities regarding high interest rates and weak consumer sentiment have not changed materially, pre-buying was seen as expectations of reversal of excise duty cuts announced in interim budget were rife.
Maruti Suzuki, the leader in the passenger car market, reported a 33.5% year-on-year jump in total volumes driven by both domestic markets (up 31.1% y-o-y) and export markets (up 58.4% y-o-y). Amongst segments, while all segments witnessed growth, the mini segment with a 52.1% jump and vans with a 42.5% y-o-y jump were the strongest and outperformed all other segments.
For Maruti Suzuki, UVs were flat while Mahindra reported an improved performance with only a 2.6% y-o-y fall. Tata Motors passenger vehicles performance continued to be abysmal as it reported 38.4% y-o-y slump in its car sales and 9.1% y-o-y decline in its UV volumes. Despite the fact that Indian car consumers are faced with the bleak issue of spiralling fuel costs, spirits are high due to a variety of factors; including and especially the newly formed government and the stay on excise duty reductions.