Rising fuel prices and high interest rates have pushed down the car sales in the domestic market for this fiscal year. A total of 11 passenger vehicle makers reported a 4% sales growth in June this year as compared to 29.73% growth in the last fiscal year.
The carmakers sold 173,181 vehicles this year in comparison to 166,758 vehicles in the same period last year. Maruti Suzuki reported a 3.8% decline in its sales in the domestic market this year (2011). The company sold 70,020 units in June 2011 as compared to 72,812 units which the company sold in the corresponding month last year (2010). Tata Motors domestic sales saw a decline of 20.91%. The company sold 21,993 units in June in 2011 as against 27,811 units which the company sold in the same month last year. On the other hand HMIL reported an increase in its sales by 11.1%, the company sales rose to 30,402 units in June this year as compared to 27,366 units which it sold in same period last year in 2010. Toyota Kirloskar Motor (TKM) reported a 94.72% increase in its sales. The company sales stood at 12,034 units in June this year as compared to 6,180 units sold by the company in the corresponding month last year. Volkswagen India too reported 166% increase in its sales in the month of June 2011 in comparison to sales of 2,032 units in the same period in 2010. Mahindra &Mahindra also reported a rise of 28.69% by selling 33,772 units in June 2011, as compared to 26,243 units which the company sold in the same month last year. Skoda Auto India also reported a 69% increase in its sales to 2,611 units in June this year as against 1,639 units in the same month a year ago. Ford India reported 8.44% increase in its sales for the month of June. The company sold 9,145 units in June 2011 as compared to the sales of 8,433 units in June 2010.
Hyundai, Volkswagen, Mahindra and Toyota’s double-digit growth was helped largely by new models which these companies introduced in India.