Cheers for auto sector as sales grow in April

Auto makers in India, led by car market leader Maruti Suzuki and the biggest two-wheeler maker Hero Honda, posted impressive sales growth rates in April, bringing back cheers to the beleaguered sector.

Continuing to benefit from the government's stimulus packages announced in December 2008 and January this year, Maruti Suzuki, Hyundai Motor, Honda Siel Cars, Mahindra & Mahindra, Hero Honda, TVS and India Yamaha Motor saw robust rise in their sales in April.

Maruti Suzuki India reported a 15.09 per cent increase in sales in April at 71,748 vehicles against 62,336 units in the same month last year. In the domestic market, MSI's sales grew by 8.93 per cent to 64,857 units against 59,539 units in April last year, while exports surged by over two-fold to 6,891 units against 2,797 units last year.

The country's second-largest carmaker, Hyundai Motor India, also saw its sales going upwards by 10.9 per cent to 44,371 units against 40,000 units in the same month last year. Its domestic sales grew by 3.5 per cent to 22,247 units compared to21,501 units in the same month last year.

The Indian auto industry had suffered badly last year due to lack of retail finance and high interest rates. The situation started improving after the government announced two stimulus packages in December and January, respectively.