India's auto makers have raised prices four times since January to either protect profit margins or to pass on the impact of higher taxes and their investments on new technology. Auto makers such as TVS Motor Co.,
Ford India Pvt. Ltd. and Bajaj Auto Ltd. raised prices for the fourth time in June, while
Major
auto sales makers in India continued to grow local vehicle sales in June as higher disposable incomes, cheaper auto loans and new small car models are driving sales.
India's auto makers have raised prices four times since January to either protect profit margins or to pass on the impact of higher taxes and their investments on new technology.
Auto sales makers such as TVS Motor Co., Ford India Pvt. Ltd. and Bajaj Auto Ltd. raised prices for the fourth time in June, while others are contemplating hikes.
India's largest car maker by sales Maruti Suzuki India Ltd. posted a 17% rise in June sales to 88,091 vehicles from 75,109 a year earlier. Local sales of the Indian unit of Suzuki Motor Corp. increased 18% to 72,812 vehicles, while exports grew 15% to 15,279 vehicles.
Strong demand for its mid-sized sedans SX4 and Dzire helped boost total sales. The two models recorded a 32.5% jump in June sales to 8,081 units, while sales of the company's SUVs surged to 1,309 units from 190 units. Small car sales grew 11% to 51,418 vehicles.
Maruti said sales rose despite a production halt for routine maintenance between June 20 and June 27 at its Gurgaon and Manesar factories in the northern Haryana state. The two units together produce 4,000 vehicles a day.
Mahindra & Mahindra Ltd., India's largest utility vehicle maker, said it managed to report higher numbers even though it also had a week-long maintenance halt at its factory in Maharashtra.
It posted a 20% rise in vehicle sales, including utility vehicles and light trucks. Total vehicle sales rose to 27,562 units from 22,999 a year earlier. Total local sales climbed 16.5% to 26,243 vehicles while exports grew two-and-a-half times to 1,201 units.
The Indian unit of Hyundai Motor Co. also reported a rise in local sales. "The domestic market continues to show a steady growth but exports have slowed down, especially in Europe," said Arvind Saxena, director of sales and marketing at Hyundai Motor India said.
Hyundai Motor India's local sales rose 19% to 27,366 units, while exports dipped 22% to 18,888 units.
Demand for cars this year has been helped with new launches by Maruti, Ford India and General Motors India. Small cars form a bulk of sales in India, a segment which Maruti dominates with models Alto, Wagon-R, Estilo, Swift, Ritz and A-Star.
There might be a slowdown in sales during July when purchases usually go down due to the monsoon season, but in the long-term, the industry should grow in healthy double-digits,
India's passenger vehicle sales are estimated to double to 4.5 million units by 2016.
Ford India said it sold 7,269 vehicles in June, up from 1,982 it sold last year. "That success was driven mainly by the popularity of the Figo," the company said. Ford launched Figo in March this year.
Ford India Managing Director Michael Boneham said the company will commence a second production shift at Chennai factory in the southern state of Tamil Nadu to meet the rising demand.
General Motors India Pvt. Ltd. reported healthy gains with sales climbing to 9,539 vehicles from 4,492. It sold 3,415 units of its Chevrolet Beat, launched in January, and 2,911 units of its other small car Chevrolet Spark.
TVS Motor, the third-largest two-wheeler maker by sales, reported a 36% surge in June sales to 156,685 units. Local sales gained 33% to 139,905 vehicles, while exports soared 66% to 16,780 units.
The maker of the Flame and Apache motorcycles sold 66,452 bikes in June, up 44% from a year earlier. Sales of its Scooty and Wego scooters grew 42% to 36,742 units.
The company sold 3,003 three-wheeled vehicles in the month, up from 810 units in the year-earlier period.
