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

   
Polluted waters of China

Polluted waters of China

Growing cities, overuse of fertilizers, and factory wastewater have degraded China's water supplies to the extent that half the nation's rivers and lakes are severely polluted.  Slideshow 

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

Top News

REUTERS SHOWCASE

Kerry's India Visit

Kerry's India Visit

Kerry presses India on WTO deal ahead of arrival  Full Article 

Big Infra Deal

Big Infra Deal

Piramal, Dutch APG tie up for $1 bln infra investment  Full Article 

E-Commerce

E-Commerce

Amazon says to invest $2 billion more in India   Full Article 

Lupin Results

Lupin Results

Q1 net profit up 56 percent on higher U.S. drug sales   Full Article 

Twitter Results

Twitter Results

Twitter assuages growth concerns for now as shares soar 35 percent  Full Article 

Auto Sector

Auto Sector

VW closes in on Toyota as global auto leader  Full Article 

Fed Meeting

Fed Meeting

Fed seen trimming bond buys, could offer vague rate clues  Full Article 

Reuters India Mobile

Reuters India Mobile

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