Auto sales growing 9.8% in all segments in April

Finally something to cheer for the auto industry!!! The beginning of the current financial year seems to be good for the domestic automotive industry. For the first time since April last year, all the segments have recorded a healthy growth. Car segment witnessed a jump of more than 17 per cent, while sales in the utility vehicle segment rose by 31 per cent, Multi purpose vehicles grew by 48% albeit on a smaller base, two wheeler sales grew by 8 per cent, as compared with the corresponding month last year.

The two-wheeler industry was the worst-hit last fiscal, posted an 8 per cent increase in sales compared with the corresponding period last year. The marriage season this year started earlier resulting in higher sales volumes, especially in the entry-level two wheeler segment last month. But the dispatches for May are likely to fall as interest rates continue to move up. So April figures cannot be seen in isolation to come to a conclusion that sales will pick up. Hero Honda reported an 8 per cent increase in sales at 2,76,580 units, followed by the second largest player Bajaj that sold 1,38,117 units, clocking a 9.18 per cent growth during the month against the corresponding period the previous fiscal.

Maruti posted an increase of 22 per cent at 51,766 units. Hyundai at 21,492 units recorded a 36.91 per cent growth as demand for its premium hatchback i10 continued to be high. Last month, most of the manufacturers such as Maruti and Hyundai had indicated that they were watching the steel price and depending on the rise in input costs, the companies would take a call on hiking their prices. This also led to higher volumes last month.

The commercial vehicles industry, which had started showing recovery since the last few months, also reported encouraging numbers with both the light and medium and heavy commercial segment sales on a high. Unlike in the case of cars, which are a luxury and a personal commodity, there is a return one gets on the purchase of commercial vehicle due to which even if the interest rates move up, it does not affect the sales so much. The medium and heavy commercial vehicles segment grew 5.28 per cent to 18,608 units and the light commercial vehicles sales rose 10.74 per cent to 14,663 units, said the SIAM data.