October car sales growth at 22-month high

NEW DELHI Fri Nov 9, 2012 11:24am IST

1 of 2. An employee walks between parked Hyundai cars ready for shipment at a port in Chennai February 22, 2010.

Credit: Reuters/Babu/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Car sales in India grew at their fastest pace in 22 months in October from a low base a year ago, helped by festive season demand that offset high ownership costs, but the industry remains cautious about the future.

Indian consumers tend to make big-ticket purchases in the festive season that began in September and peaks in November after Diwali and carmakers have said they expected sales to pick up during the period.

Automakers sold 172,459 cars in October, up 23.1 percent from a year earlier, the first rise in three months, according to data released by the Society of Indian Automobile Manufacturers.

Sales of motorcycles rose 6.7 percent to 936,122 vehicles. Truck and bus sales stood at 66,722 vehicles during the month, compared with 62,013 a year earlier.

"There is some cheer, but the struggle is still on," said Vishnu Mathur, director-general of the industry body, adding that a "very low base" also helped the growth.

"Next month will be quite critical for us. We'll have to see whether this growth is continuing or it is coming down."

SIAM had slashed its estimates last month for car sales in the current fiscal year, expecting them to grow just 1 percent to 3 percent.

High interest rates and rising fuel costs have deterred Indian buyers, typically reliant on loans for purchases.

A hike in the price of subsidised diesel in September pushed up ownership costs and forced almost all of the country's automakers to increase the price of their vehicles due to increased freight costs, further dampening demand.

(Reporting by Devidutta Tripathy; Writing by Aradhana Aravindan; Editing by Matt Driskill)

FILED UNDER:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage