Mumbai, February 08: Surging car sales broke all records in January with the country’s largest and second-largest passenger car manufacturers, Maruti and Hyundai, careering to their highest-ever monthly figures. Auto sales have been rising since January last year, after a government stimulus package that reduced excise duties.
Maruti’s sales last month hit 81,087 units, up 21%, against 67,005 units in January last year, while Hyundai posted its highest domestic sales since 1998 when it launched flagship model Santro. Domestic shipments last month went up 40.8% to 29,601 units vis-à-vis 21,016 units in January 2009.
The auto industry overall is expected to break its boom-year sales record of 10 million units this fiscal at a conservative growth estimate of 10%, projected by Society of Indian Automobile Manufacturers (Siam). The sector last touched the 10-million mark in 2006-07.
The auto industry set a few more records in calendar 2009 with some players recording their best sales in any year, largely on the back of the stimulus package and lower base effect. For instance, Maruti’s domestic sales in 2009 were up 19.9% to a record of 836,891 units, against 697,845 units in 2008. Hyundai reported a jump of 14.4% at 559,880 units, its highest cumulative sales, compared with 489,343 units in 2008.
Record January sales have also been attributed to the anticipation of an increase in excise duties in the upcoming Budget. “While new models in the compact car category will continue to be a major driving force behind the surge in sales, the buzz that the government may roll back the excise duty reduction has prompted people to advance their purchases,” said a Delhi-based auto expert.
Maruti Suzuki’s total sales (domestic and exports) jumped 33.3% in January to a new high of 95,649 units, compared with 71,779 units in the same month a year earlier. Hyundai Motor registered a 41.6% cumulative growth last month at 52,635 units, vis-à-vis 37,171 units in January 2009.
“Sales have been increasing for months and continued to be exceptionally high in January on the back of robust demand for the A-Star in Europe following the scrappage incentives there. However, domestic sales are rising because of healthy growth in rural markets and also a resurgence in corporate buying,” said Maruti Suzuki executive officer (sales & marketing) Mayank Pareek.
According to Hyundai director (marketing & sales) Arvind Saxena, the company’s latest products and the government stimulus have been the main reasons for the company’s record performance.
“The company’s success is riding on both the i10 and i20 that have been doing well in the domestic as well as export markets,” he said. Hyundai, which follows a calendar year, is hoping sales will continue in cruise control. “We have started the year on the right note and we hope the momentum will continue with the help of the stimulus package offered by the government,” Saxena added.
—-Agencies