The growth trajectory for auto majors continued in the month of May 2010 facilitated by easy financing options, launch of new car models and increase in disposable income of consumers  Continuing the momentum of the previous months, May 2010 turned out to be yet another profitable month with majority of auto makers registering a growth in sales. As per a data released by the Society of Indian Automobile Manufacturers (SIAM), in May 2010 car sales stood at 1.48 lakh units as against 1.13 lakh in May 2009. According to Kapil Arora, partner - risk advisory services at Ernst & Young, “The demand for vehicles will remain robust in the coming days and the industry is anticipated to touch new heights. With an increase in disposable income, people are willing to purchase new vehicles.” On being asked whether increase in prices of raw materials would affect car sale, Mr Arora said that it is up to the manufacturers to decide whether they want to absorb the cost or pass some burden to consumers.Factors boosting car sales
A slew of new launches over the past few months have also propelled the growth of auto sales. In fact many auto makers such as Volkswagen, Chevrolet, Ford etc have benefited from their new launches such as Volkswagen Polo, Chevrolet Beat and Ford Figo, respectively. According to Vijayant Goel, managing director of K R Lamp Cap Industries, a small-sized manufacturer of automobile components in Dehradun, “Anticipation of proposed hike in excise duty had also resulted in advance bookings of cars, which helped auto majors to record high sales figures. Auto makers are continuously trying to fabricate newer products to sustain sales.” Moreover, car sales have also been boosted by easy availability of finance and car loans.
The two-wheeler industry too registered high growth with Hero Honda leading the way, followed by Bajaj Auto.
With a steady increase in the index of industrial production (IIP), coupled with improvement in operating environment for fleet operators over the past few months, the commercial vehicle segment too registered high growth in May 2010.
Arup Choudhury
|
