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ACAAuto sales vroom in May riding on robust demand,cheap credit

Domestic car and motorcycle sales rose sharply in May on the back of robust demand and affordable credit.

Written by ENS Economic Bureau | New Delhi |
June 2, 2010 2:11:12 am

Domestic car and motorcycle sales rose sharply in May on the back of robust demand and affordable credit.

Maruti Suzuki for the first time crossed the 1-lakh mark in monthly sales. The company sold 1,02,175 units,including exports,during the month led by higher sales of its popular hatchback models such as Alto,Swift,A-Star and WagonR.

Hyundai Motor India’s sales stood at 46,808 units,witnessing 7.3 per cent surge compared to the previous month on year-on-year basis. The company attributed the relatively lower sales to its plant shutdown for annual maintenance.

Tata Motors registered 41.26 per cent increase in sales at 56,779 units during the month compared to the same period last year. The company had sold 40,196 units in May 2009,Tata Motors said in a statement. The homegrown auto major’s domestic sales rose by 37.53 per cent in May at 52,801 units against 38,392 units in the same month last year.

Mahindra & Mahindra (M&M) sold 27,036 units in May,registering a jump of 63 per cent over the corresponding month last year. While it continued to post higher number for models such as Scorpio,Bolero and Xylo,the company reported a modest increase of 5 per cent in sales of Logan.

“Vehicle sales has been growing fast in the last few months on robust demand and high consumer confidence. The trend should continue for the next few quarters,” Kapil Arora,partner (automotive practice) at the Indian arm of global consulting firm Ernst & Young,said. Among other car makers the local arms of General Motor and Toyota also posted significant increase in sales.

Hero Honda,a joint venture of Delhi-based Hero group and Japanese automaker Honda recorded a 14 per cent increase in its volume with total sales reaching 4,35,933 units

in May this year.

“This is the highest ever monthly sales. The previous highest monthly sales was 4,15,137 units in August last year,” a company official said.

Bajaj Auto reported 63 per cent jump in its sales during May to 2,69,488 units. TVS Motor also clocked 30 per cent increase in its sales to 1,54,667 units as demand improved.

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