Car sales in India dip in May 2011
Latest updates in World’s automobile market suggests that Japanese car maker Suzuki Motor Corp. and Korean car giant Hyundai Motor Co. gained marginal profits in sales of passenger cars in May. But despite high sales figure, Tata Motors Ltd. profit share experienced a downfall due to high inflation, rising loan rates and increase in fuel prices.
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If reports are believed, the increase in car sales has come to halt a due to rise in car prices owing to the increase in raw material costs. Further, amplification of interest rates by the central bank also acted as major hurdle for the customers who were thinking of making the purchase. It is worth mentioning that Reserve Bank of India increased interest rate by 2.5 percentage points in nine moves since March 2010. In Indian car market, the sales of cars increased at a record 27% in FY 2010-11 to 15.51 million units but as per market analysts expects the percentage to stay in between 12%-15% this year due to the higher sales base.
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If reports are believed, Maruti Suzuki India Ltd. disclosed sales reports of May, 2011 showing 1.9% rise in car sales in May to 104,073 cars. Also, in India, car sales of Maruti India have grown 4% to 93,519 cars with exports failing to show much prospects and experiencing a fall of 13% to 10,554 cars. Further, Hyundai Motor India Ltd. announced that their car sales figures increased up to 2% to 47,766 vehicles in May, 2011 which was backed by the launch of Hyundai Verna Fluidic in May. Hyundai India received 12,000 bookings for Hyundai Verna Fluidic in the month of May alone. Additionally with the rise in number of cars entering Indian car market, Indian consumers are getting more options to choose from. And with the popularity of small cars in India gaining pace, the share of small car is increasing in the total car sales.
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