Snapping a nine-month fall,domestic passenger car sales grew by 15.37 per cent to 1,33,486 units in August this year,compared to 1,15,705 units in the same month last year.
Society of Indian Automobile Manufacturers (Siam),however,played down the feat saying the growth was mainly due to low base effect as a result of the month-long lockout last year at the countrys largest car maker Maruti Suzuki India (MSI) Manesar plant.
This (growth) is not a reflection of the market conditions. This is mainly due to Marutis numbers compared to last year. The tough market conditions still remain. Interest rates are high,fuel prices continue to be high while sentiments are extremely low, Siam deputy director general Sugato Sen said.
He said the positive growth seen in August is unlikely to be sustained in September and a recovery in the market is likely to happen only in the next couple of quarters.
For this fiscal,we are staring down at a negative growth of car sales. If we have to match last years 2.7 million units,we need to be selling over two lakh units each month but in the last three months,we have sold less than that, Sen added.
In August,Maruti doubled its domestic car sales at 63,499 units as against 31,653 in the same month last year.
Tata Motors saw its sales plunge by 50.57 per cent to 8,761 units as against 17,727 units in August last year.
Mahindra & Mahindra saw its domestic passenger vehicles sales decline by 25.45 per cent to 18,137 units during the month.
Hyundai Motor India saw a marginal increase during the month at 28,281 units as against 28,192 units last year.