October car sales growth at 22-month high
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)
- Tweet this
- Share this
- Digg this
- UPDATE 8-Dallas Ebola patient vomited outside apartment on way to hospital
- Boxer Sarita Devi faces action after refusing medal at Asian Games
- Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle
- Putin says Russia wants to move to national currencies in trade
- China tells foreign countries not to meddle in Hong Kong
BACK IN JAIL
Subrata Roy, the jailed chief of India's Sahara conglomerate, is back in a cell after living in a makeshift prison office for two months as he tried to negotiate the sale of his luxury hotels, a jail official said. Full Article
Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle. Full Article
Diageo bars United Breweries from appointing independent director at United Spirits. Full Article