Automobile sales in Indian market reached record levels this festive season. Due to easily available finance, discounts and offers in new models, festival bonus and so on, Indian automobile industry reached a peak level in sales.
Society of Indian Automobile Manufacturers (SIAM)’s director general, Vishnu Matur said, “October demand was good due to the festive season. The basic fundamentals of the industry remain strong. Last month was the best ever for new cars, motorcycles and scooters. Sales normally fall in the second half but demand is still high so we should more than meet the sales target of over 2.4 million passenger vehicles for 2009-10.”
He also added, “The record numbers are largely due to the festival season, which advances demand from November and December. There is also the positive market sentiment, the increasing purchasing power of the people and the easy liquidity in the system that is helping in keeping interest rates low.”
Finally he said, “The outlook is very positive — we are hoping to exceed the 18-20 per cent growth target for the fiscal, but the next five months are crucial. We have to watch out for the tightening of interest rates and rising raw material prices,”
