Auto sales hit record high in Jan

The Indian auto industry today reported the highest ever sales in a single month at over 1.1 million units in January, boosted by easy availability of retail finance and soft interest rates.

According to the Society of Indian Automobile Manufacturers (Siam), total sales in the domestic market stood at 1,114,157 units, against 768,698 units in the year-ago period, a jump of 44.94 per cent.

“This is the highest ever sales by the auto industry. Economic growth, reduced interest rates and better money supply has helped the industry in posting such a growth,” Siam Director General Dilip Chenoy said.

He added the high growth in terms of percentage in January was also contributed by last year’s low base. “Reduced commodity prices compared to last year also helped.”

The earlier highest sales by the industry was in October 2006, at 1,017,198 units.

The domestic passenger car segment also posted the highest ever sales at 145,905 units against 110,300 units in the corresponding month last year, up 32.28 per cent.

It was the 10th straight month of growth by the segment. The car manufacturers had earlier touched the peak at 129,358 units in March 2009, Chenoy said.

During the month, major manufacturers, including Maruti Suzuki, Hyundai Motor, General Motors and Mahindra & Mahindra, reported their individual record breaking sales.

Asked about prospects in February, Chenoy said: “It will depend on multiple factors like pent-up demand and price rise. Still, we will have good growth in the month.”

According to Siam figures, motorcycle sales rose 43.69 per cent to 650,633 units last month, from 452,809 units in January 2009.

Carrying forward the upward march that began in July 2009, sales of commercial vehicles in the country soared over two-fold to 53,447 units against 23,154 units in the same month in 2009.