As a positive signal for carmakers at the start of 2012, sales in January have shown a growth on an annual basis. This has been attributed to improved market sentiments and pent-up demand converting to purchases.
Market leader Maruti Suzuki, after seven straight months of decline, posted a one per cent rise in sales, while all other major players posted double-digit growth. Maruti's sales were largely buoyed by institutional sales of the Gypsy compact utility vehicles and its premium hatchback range.
“We're seeing a slow and gradual growth. It's a good sign, but how rapidly the positive sentiments will turn to volumes is still to be seen,” Mr Vishnu Mathur, Director-General, Society of Indian Automobile Manufacturers, told
Interest rates
“The real growth will only happen when the interest rates are reduced, I expect this to happen only post Budget in April. Interest rates have reached their peak and both the Government and the central bank have indicated their support to industry,” he added.
Hyundai posted 12 per cent higher sales in the month, though its exports were up 23 per cent (16,001 units).
Close rival Tata Motors grew 14 per cent and edged a bit ahead of Hyundai in the month in volumes. Sales of the Tata Nano were higher by 15 per cent at 7,723 units.
“The year seems to have started on a positive note, domestic sales are showing some buoyancy. But we will have to cautiously watch how this momentum picks up in the months ahead,” Mr Arvind Saxena, Director Marketing and Sales, Hyundai Motor India, said.
Toyota Kirloskar's 89 per cent sales growth was led by the Etios range, while it is also increasing production for the Fortuner SUV from this month.
Mahindra's sales were 16 per cent, while Volkswagen saw a three per rise (5,789 units) and Nissan posted highest-ever monthly sales of 5,168 units.
However, both US-based carmakers saw a slight sales dip, General Motors' sales fell 17 per cent to 8,241 units in the month, while Ford saw nine per cent lower sales at 9,137 units.
Two-wheelers
Hero MotoCorp posted record monthly sales and an 11 per cent growth over the corresponding month last year and erstwhile partner Honda managed a 47 per cent rise in sales and crept into the number three position in the two-wheeler market.
Yamaha's monthly sales were up 20 per cent (26,300 units), while Suzuki two-wheelers saw sales rise 23 per cent (35,099 units).