Automobile companies continue to show very good volume growth as demand for both passenger and commercial vehicles remain strong despite the recent price hikes and higher interest rates on vehicle loans.

Volume sales of none of the frontline auto companies disappointed for the month of January, except some of the two-wheeler companies whose growth rates were in single digits.

Maruti continues to rely on the premium hatchback segment to drive volume growth. Maruti achieved a volume growth of 42 per cent in this segment to 44,736 units - mostly helped by the launch of the diesel Swift. Sales of entry level Maruti-800 and sedan models Esteem and Baleno declined during the month while sales of passenger vans went up. Exports by the company jumped nearly 100 per cent over the previous year month.

Hyundai achieved the best growth rate for the month among large manufacturers, with a highly impressive 49 per cent rise in domestic sales. The company's flagship model Santro achieved a growth rate of 78 per cent in domestic sales while total sales of the model including exports were 23,792 units for the month

Passenger car volume growth was relatively subdued for Tata Motors, though the company's flagship model Indica achieved its highest ever monthly sales at 14,466 units - an increase of 14 per cent over Jan 2006. UV and SUV sales of Tata Motors went up by 20 per cent and SUV model Safari achieved the highest monthly volumes since launch.

M&M sold 4,190 units of SUV model Scorpio, the highest ever monthly sales since introduction. Tractor sales by the company increased 13 per cent to 8,668 units from 7,658 units a year ago, including exports of 654 units.

Commercial vehicle demand shows no signs of a decline as economic momentum is very strong and continues to lift demand for transport services. LVC sales continue to drive commercial vehicles volume growth for Tata Motors, with an increase of 44 per cent over the same month of previous year. Sales of medium and heavy commercial vehicles of Tata Motors went up 31 per cent. Ashok Leyland's growth rate of 62 per cent over the previous year month was spectacular.

Bajaj Auto continues to dominate the 3-wheeler segment as none of its competitors have been able to make an impression in the market. The company achieved very good growth rate of 45 per cent for the last month in this segment, which is very impressive considering its almost monopolistic market dominance

Hero Honda's volume growth for the month of January was better than expectations as the company achieved a 19 per cent rise even on the substantially higher base when compared to its main competitors. The company has reiterated that it is considering an entry into the 4-wheeler segment, though there are some differences with its partner Honda Motor on this issue.

Bajaj Auto is planning to phase out its 100 cc models, which now account for 45 per cent of the company's motorcycle sales, by the second quarter of next financial year. The company has finalised the design and specifications of the new models and trial production would start by next quarter. Bajaj Auto would also commission its new motorcycle plant at Pantnagar with a capacity of 1 million units per annum.