Automobile sales in India cross record 11,00,000 units in Jan 2010

Posted by Harry on February 9th, 2010 | No Comments

Cars like the Nano will only boost demand for automobiles in India

India is definitely the hottest destination for automobile companies. Here’s why – India’s automobile sales crossed 11 lakhs in a single month – January 2010. SIAM, Society of Indian Automotive manufacturers reported that the total sales in domestic market stood at 11,14,157 units, against 7,68,698 units in the year-ago period, a whopping jump of 44.94 per cent.

“This is the highest ever sales by the auto industry … economic growth, reduced interest rates and better money supply has helped the industry in posting such growth,” SIAM Director General Dilip Chenoy told reporters here. He said the high growth in terms of percentage in January was also contributed by last year’s low base. “Reduced commodity prices compared to last year also helped.”

The industry’s previous best was 10,17,198 units in October 2006. It has taken three long years for the industry to bye pass that mark. Domestic car sales stood at 1,45,905 against 1,10,300 year-on-year (up 32.28%). The car manufacturers had earlier touched the peak at 1,29,358 units in March, 2009, Chenoy said.

The month witnessed record breaking sales figures by Maruti Suzuki, Hyundai Motor, General Motors and Mahindra & Mahindra. Asked about prospects in February, he said: “It will depend on multiple factors like pent up demand, price rise. Still we will have good growth in the month.”

The 2 wheeler segment contributed maximum to the sales with a 43.43% increase to 8,34,383 units compared to 5,81,729 units sold the same period last year. Main contributions came from Hero Honda and Bajaj. Bajaj witnessed over a 100% increase in sales in January 2010. Commercial vehicles sales were up over 100% ending at 53,447 compared to 23,154 over the same period last year.