The Indian auto industry sold 12,08,851 units in May — a record sale for the month of May — on the back of an improved economy and an increase in consumer spending.
According to Society of Indian Automobile Manufa-cturers (SIAM), the total sales for all categories stood at 12,08,851 units as against 9,29,917 units for the corresponding period an year-ago. The 30 per cent rise in sales is in contrast to the usual trend of lower volumes in May.
“Last month’s figures were the best ever sales for the month of May in almost all categories. Our economy is growing very rapidly. The per capita income has almost touched $1,000 and that’s a magical figure, which is the threshold for automobile demand,” SIAM director-general, Mr Vishnu Mathur, told reporters here.
Besides, other factors like stable interest rates and easy availability of finance have also spurred sales. SIAM puts domestic car sales of the previous month at 1,48,481 units, against 1,13,810 units sold in May last year. This makes for an increase of 30.46 per cent.
Car market leader Maruti Suzuki sold 76,120 units in May, a figure higher by 21.06 percent while rival Hyundai Motor India’s sales grew by 15.53 per cent. Similarly, Tata Motors’ sales also jumped to 18,618 units, which was 45.02 per cent higher than last year.
However, SIAM director general cautioned that sales may be affected if the monsoon, which the Met department has predicted to be good this year, becomes weak. Rising inflation is another concern.
“If the government takes steps to control the money supply, then at some point of time interest rates will be under pressure. We have to track it very carefully,” Mr Mathur said. — PTI