Car sales inch up again, but full recovery 'distant'

11 May 2009

Car sales in India rose for a third straight month in April, helped by lower borrowing costs, rural demand and the government's stimulus measures, but industry officials said a lasting recovery was still distant.

The automobile industry started the year with growth in both overall production and domestic sales in April 2009 over the same month last year with production growing at 10.19 per cent and domestic sales by 10.76 per cent. This was mainly because of better performance in the two- wheeler segment.

Data from the Society of Indian Automobile Manufacturers released today showed automakers sold 102,899 cars in April, 4.2 per cent higher than a year earlier. Car sales had slid for four months, before starting to rise in February.

According SIAM, domestic passenger car sales in April went up to 102,899 units from 98,752 units in the same month last year. Two-wheeler sales also surged by 13.71 per cent to 700,995 units in April, compared to 616,468 units in the same period last year. Bike sales during the month were up 12.11 per cent at 562,357 units as against 501,592 units in the corresponding month a year ago.

However, the eco-friendly electric two-wheelers segment declined with growth rate being -36.13 per cent.

Three-wheelers segment sales grew marginally by 1.69 per cent in April 2009. While passenger three-wheelers grew at 10.62 per cent in April 2009, goods carriers declined at 21.20 per cent.