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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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