Car Sales Pick Up, Market Recovery Still Far

Tuesday 12 May 2009, 00:00 AM by Rishi

Car sales in India have sizzled for the third consecutive month in the country. The main support to overall car sales comes from the boom in exports of the small cars from India. Although there is a slight positive change in the domestic market, however, a complete healthy domestic sales still remains elusive.

According to the latest figures released by Society of Indian Automobile Manufacturers on Monday, car sales were up by 4 percent in April 2009 at 1.02 lakh units. Exports figures were up by more than 35 percent clocking sales of 29,037 units in April 2009 mainly due to policy changes rendered by the governments in the UK, Germany, South Korea and Italy. In Germany, the government is offering a discount 2500 Euros if the customer opts to exchange bigger car with a small car option. Similarly, in the UK the government is promoting use of electric vehicles or smaller vehicles in the city especially in London and similar cities in the UK.

Sales of commercial vehicles still remain depressive owing to the credit crisis in the market. There has been only marginal increase in the sales of lighter trucks and buses which is not enough to mark a healthy growth. Industry experts expect the domestic market to get a boost with new car launches like Maruti Ritz, Honda Jazz and Fiat’s Grand Punto.

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