Car companies clock 31% growth on continuing demand, easy finance

Car companies clock 31% growth on continuing demand, easy finance

Author | exchange4media News Service | Saturday, Feb 14,2004 7:46 AM

Car companies clock 31% growth on continuing demand, easy finance

The domestic car manufacturer’s are definitely riding in the fast lane. The car manufacturers have reported a 31.1 per cent growth during the month of January 2004.

Sales during the month jumped to 71,875 cars from 54,813 units, as per the data released by the Society of Indian Automobile Manufacturers (Siam).

There has been a continued surge in demand over the last few months, which resulted in cummulative sales during the past 10 months (April 2003-January 2004) growing by 27.4 per cent to 5,55,904 units from 4,36,275 units a year ago.

Bus and truck sales also grew by 35.5 per cent to 25,141 units against 18,545 units during the month of January.

Cumulative sales for first 10 months to January 2004 rose by 36.1 per cent to 2,03,2679 units from 1,49,292 units reported during the same period a year ago.

In the car segment, Maruti Udyog reported a 35.8 per cent rise to 38,140 units during January 2004, while Hyundai Motor showed a 24.4 per cent growth to 12,546 units during the month. Tata Motors, the maker of ‘Indica’ and ‘Indigo’ cars, clocked a 11.5 per cent rise in sales to 11,084 units.

Higher sales was also aided by easy availability of cheap finance schemes coupled with a cut in excise duty last year and increase in disposable income with buyers. There has been a consistent growth in car sales over the past three months. Sale of cars grew by 24 per cent in October 2003, 41.3 per cent in November and 36.5 per cent in December.

Riding the boom in construction business, specially highway projects, bus and truck sales went up by 35.5 per cent to 25,141 units in January 2004 from 18,545 units a year ago. Utility vehicle sales jumped by 31.5 per cent to 15,119 units while two-wheeler sales in the domestic market, the second-biggest in the world after China, surged by 12.5 per cent to 4,56,309 units.

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