Early Start Of Festivities For Indian Car Manufacturers

Published on 13 Aug, 2015

Early Start of Festivities

The cumulative sales of seven leading automobile manufacturers increased 18% y-o-y to 204,586 units in July 2015, indicating a strong recovery from the modest growth of 2% y-o-y seen in June 2015.

As per SIAM, this has been the best ever July performance in the domestic passenger vehicle industry. The growth was supported by new launches, and reduction in fuel prices. Tata Motors, Hyundai, and Maruti Suzuki registered a significant increase of over 20% y-o-y in dispatches, followed closely by Honda and Volkswagen with 18–19%.

Car Manufacturers - Indian Auto Report

Of the seven automobile manufacturers who declared their sales numbers, only Mahindra reported a y-o-y decline as it continues to sell conventional utility vehicles and awaits new launches. GM, Nissan, Renault, Ford, and Datsun have yet to declare their dispatch numbers.

The July sales figures suggest that the Indian automobile sector is likely to have a good second half in 2015. These numbers indicate a rise in consumer sentiment as inflation slows and urban residents are encouraged to spend more. Moreover, better-than-expected monsoons keeping inflation in control, continued weakness in oil prices amid soft commodity markets, and any rate cuts in the coming months could boost the sector.