Maruti Suzuki, the largest car maker of India, registered growth in sales after eight months. Sales volumes increased by 5.2 per cent in January 2012 to 115,433 vehicles on Year-over-Year (Y-o-Y) basis due to higher exports and improved demand for Maruti’s hatchbacks in the domestic market.
This brings respite to the company for the first time after May 2011, when its labour problems halted production at its Manesar plant. The labour issues have now been resolved and production is back on track.
The company saw a 22 per cent increase in the consolidated sales of Swift, Estilo and Ritz hatchbacks. The company’s domestic sales remained almost consistent on Y-o-Y basis, from 100,422 vehicles in January 2011 to 101,047 units in January 2012. On the other hand, its export volumes went up by 54 per cent, settling down at 14,386 units.
India has been one of the fastest growing car markets in the international arena in the past few years, though sales decreased in 2011. Factors like costly auto loans and increasing fuel prices compelled many people to put off buying a new car or cancel the plans altogether. However, there has been a slight increase in demand since November 2011 and market experts believe that this sales growth will continue in future. It is anticipated that the central bank of the country will begin reducing interest rates as inflation stabilises in India.
Society of Indian Automobile Manufacturers (SIAM), the national industry body, expects that the demand for new cars in the country will increase in the next fiscal year. It has forecasted that sales will go up by 11-13 per cent in 2012-13, much higher than the 0-2 per cent increase it anticipates for the current financial year.
