After four months, the domestic car sales rose by seven per cent (1.71 lakh units) in November, marking a marginal improvement in market sentiments. This turnaround has been attributed to increased demand and the lower base of the same month last year.
Though overall domestic auto sales in the month rose 22 per cent, a Society of Indian Automobile Manufacturers' (SIAM) official said that 2011-12 is expected to be flat in terms of growth. In the current month, growth is expected to be lower than November.
After a strong 2010-11 when sales grew 27 per cent, the current fiscal has fared poorly for the industry. Though most segments managed to post some growth, the high volume passenger car segment has seen a 3.5 per cent drop (April-November 2011) in sales on the back of rising interest rates and fuel prices, apart from an increase in vehicle prices on the back of higher raw material costs.
November sales in the passenger vehicle segment, which includes cars, utility vehicles and vans, rose eight per cent, the SIAM data showed. Utility vehicles sales made the highest gains of 32 per cent, while van sales declined eight per cent.
Market leader Maruti Suzuki saw its sales drop 19 per cent (82,870 units) because of a constraint on the supply of diesel engines, while other major players such a Hyundai and Tata Motors saw increased sales of 11 per cent (35,000 units) and 67 per cent (32,829 units), respectively. Utility vehicle major Mahindra & Mahindra (M&M) also made a 62 per cent (19,934 units) gain in sales.
Commercial vehicle sales were up 35 per cent (66,264 units) in the month, with leader Tata Motors posting a 29 per cent growth (39,645 units), Ashok Leyland 67 per cent (6,474 units) and M&M 46 per cent (11,241 units). All sub-segments, except the buses, did well.
Two-wheelers
The two-wheeler sales in the month rose 25 per cent, with Hero Motor Corp recording 27 per cent higher sales (5.20 lakh units). Rival Bajaj Auto's sales were up 18 per cent (2.28 lakh units), while TVS Motor and Honda Motorcycle and Scooters saw sales go up eight per cent (1.50 lakh units) and 59 per cent (1.89 lakh units), respectively.
Exports strong
Overall auto exports grew 38 per cent in the month, with the highest growth seen in two-wheelers (41 per cent) and the lowest in commercial vehicles (20 per cent). Passenger vehicle exports rose 34 per cent.