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NEW DELHI -- Car makers in India recorded their highest-ever monthly sales in September, continuing several months of strong growth as Maruti Suzuki India Ltd., Hyundai Motor Co., Ford Motor Co. and others benefited from the introduction of new models, easier availability of loans and upcoming festivals.
The sustained strong growth in demand for cars, motorcycles and trucks led the Society of Indian Automobile Manufacturers to raise its sales projection for the current financial year through March 31.
The industry lobby group now expects automobile sales in India to grow 18%-20% this year, up from its previous forecast of 13%-15%, SIAM President Pawan Goenka told a news conference in Mumbai Friday.
In September, car sales gained 30% to 169,082 autos, according to SIAM. September sales outpaced August' s record 160,794 cars and July's 158,674 cars.
Sales during the April-September period gained 34% to 922,281 autos.
Automobile sales in India have been rising as existing and new companies introduced several models and borrowing costs remained steady. Higher disposable incomes among the country's middle class of more than 250 million are also helping sales in the world's second-fastest growing major economy.
September sales were also boosted by automobile dealerships stocking up ahead of the two-month festival season that begins October. Car sales in India generally rise during this period, when it is considered auspicious to buy new products such as cars.
Mr. Goenka said SIAM expects car and sport-utility vehicle sales to grow 21%-23% in this financial year, up from its previous forecast of 12%-13%. Local car and SUV sales are likely to grow to 2.4 million autos this year from 1.95 million, he said.
"Over the long-term, comparatively low penetration levels, a healthy economic environment and favorable demographics supported by higher per-capita income levels are likely to help auto companies in sustaining their top-line growth," Vaishali Jajoo, analyst at Angel Broking, said recently.
Mr. Goenka cautioned, however, that a rise in interest rates and a shortage in the supply of auto parts can moderate sales growth in the coming months. He said production can fall 5% during the October-December quarter due to these shortages.
Local sales at Maruti, India's largest car maker by sales, rose 28.5% to 81,060 cars in September. The local unit of Suzuki Motor Corp. makes eight small-car models, including the Alto, Swift, WagonR, Ritz and Zen Estilo.
Hyundai's local unit posted a 14% rise in local sales to 31,751 cars, while sales at Ford India Pvt. Ltd. more than doubled to 8,098 cars, helped by demand for the Figo small car.
Car sales at Tata Motors Ltd. surged 30% to 20,561 units.
Commercial-Vehicle, Two-Wheelers Sales Also Post Gains
In September, local truck and bus sales grew 30% to 59,455, helped by strong performances from market leader Tata Motors, second-ranked Ashok Leyland Ltd. and Mahindra & Mahindra Ltd.
Truck and bus sales at Tata Motors rose 14% in September to 31,624 vehicles, while those of Ashok Leyland nearly doubled to 9,513 vehicles.
Mr. Goenka said SIAM expects truck and bus sales to rise 20%-22% in the current fiscal year. It had previously forecast truck sales to rise 19%-20% and those of buses between 4% and 5%.
"Growth in commercial vehicles didn't start till October-December of last fiscal year, then they grew very fast for the next three quarters and now they are coming down to the same level as rest of the industry," Mr. Goenka said.
In the motorcycle segment, sales rose 15.5% to 778,352 units as Hero Honda Motors Ltd., Bajaj Auto Ltd. and TVS Motor Co. reported higher sales.
Scooter sales increased 47% to 166,494 units, with the local units of Honda Motor Co. and Suzuki Motor posting gains.
Overall, vehicle exports in September soared 24% to 189,799 units.
India Car Sales Hit Record - WSJ.com
The sustained strong growth in demand for cars, motorcycles and trucks led the Society of Indian Automobile Manufacturers to raise its sales projection for the current financial year through March 31.
The industry lobby group now expects automobile sales in India to grow 18%-20% this year, up from its previous forecast of 13%-15%, SIAM President Pawan Goenka told a news conference in Mumbai Friday.
In September, car sales gained 30% to 169,082 autos, according to SIAM. September sales outpaced August' s record 160,794 cars and July's 158,674 cars.
Sales during the April-September period gained 34% to 922,281 autos.
Automobile sales in India have been rising as existing and new companies introduced several models and borrowing costs remained steady. Higher disposable incomes among the country's middle class of more than 250 million are also helping sales in the world's second-fastest growing major economy.
September sales were also boosted by automobile dealerships stocking up ahead of the two-month festival season that begins October. Car sales in India generally rise during this period, when it is considered auspicious to buy new products such as cars.
Mr. Goenka said SIAM expects car and sport-utility vehicle sales to grow 21%-23% in this financial year, up from its previous forecast of 12%-13%. Local car and SUV sales are likely to grow to 2.4 million autos this year from 1.95 million, he said.
"Over the long-term, comparatively low penetration levels, a healthy economic environment and favorable demographics supported by higher per-capita income levels are likely to help auto companies in sustaining their top-line growth," Vaishali Jajoo, analyst at Angel Broking, said recently.
Mr. Goenka cautioned, however, that a rise in interest rates and a shortage in the supply of auto parts can moderate sales growth in the coming months. He said production can fall 5% during the October-December quarter due to these shortages.
Local sales at Maruti, India's largest car maker by sales, rose 28.5% to 81,060 cars in September. The local unit of Suzuki Motor Corp. makes eight small-car models, including the Alto, Swift, WagonR, Ritz and Zen Estilo.
Hyundai's local unit posted a 14% rise in local sales to 31,751 cars, while sales at Ford India Pvt. Ltd. more than doubled to 8,098 cars, helped by demand for the Figo small car.
Car sales at Tata Motors Ltd. surged 30% to 20,561 units.
Commercial-Vehicle, Two-Wheelers Sales Also Post Gains
In September, local truck and bus sales grew 30% to 59,455, helped by strong performances from market leader Tata Motors, second-ranked Ashok Leyland Ltd. and Mahindra & Mahindra Ltd.
Truck and bus sales at Tata Motors rose 14% in September to 31,624 vehicles, while those of Ashok Leyland nearly doubled to 9,513 vehicles.
Mr. Goenka said SIAM expects truck and bus sales to rise 20%-22% in the current fiscal year. It had previously forecast truck sales to rise 19%-20% and those of buses between 4% and 5%.
"Growth in commercial vehicles didn't start till October-December of last fiscal year, then they grew very fast for the next three quarters and now they are coming down to the same level as rest of the industry," Mr. Goenka said.
In the motorcycle segment, sales rose 15.5% to 778,352 units as Hero Honda Motors Ltd., Bajaj Auto Ltd. and TVS Motor Co. reported higher sales.
Scooter sales increased 47% to 166,494 units, with the local units of Honda Motor Co. and Suzuki Motor posting gains.
Overall, vehicle exports in September soared 24% to 189,799 units.
India Car Sales Hit Record - WSJ.com
