Leading car makers including as Maruti Suzuki, Hyundai, Honda, Ford and Toyota have reported a spurt in sales in May in a sign that auto industry's fortunes may be turning around slowly but steadily.
Tata Motors, M&M and GM have, however, continued to slip in monthly volumes. On the flip side, two-wheeler sales have continued to grow on strong demand.
The data shared by the top eight carmakers on Monday showed an overall industry growth of around 7% in May compared with the same period last year.
The auto industry, which has remained under pressure for more than two years now, is hopeful of a revival with the new government at the Centre.
Maruti Suzuki, the biggest carmaker in the country, sold 90,560 units in May compared with 77,821 units in May 2013, a growth of 16.4%.
Hyundai, the second-largest car company, saw a year-on-year growth of 12.8% for wholesale despatches in May. "The growth in volumes is in line with this year's objective to grow in market share and volume.
The success of Xcent, Grand and Santa Fe increased volumes creating positive momentum. We foresee to maintain this positive trend by strengthening our product portfolio and improving channel efficiencies," said Rakesh Srivastava, senior vice-president - sales and marketing, Hyundai Motor India.
Honda Cars India (HCI) and Ford India too registered a growth in May on the back of new launches. HCI registered a growth of 17.8% in May, while Ford wholesale despatches rose 51.2%.
"A stable government is a positive development for overall economic and business sentiment in the country. We are hopeful that the new government will support ongoing industry-friendly initiatives like excise duty reduction and look at further positive measures to improve consumer sentiment," said Vinay Piparsania, executive director of marketing, sales and service at Ford India.
Wholesale volumes of Toyota Kirloskar Motor rose 18% in May. The company said it has resumed normalcy in production after it lost production due to a strike.
On the other hand, home-grown manufacturers – Tata Motors and Mahindra & Mahindra (M&M) -- continued to see a decline in numbers during the month. Lack of new launches and decline in segments like utility vehicles impacted the overall volumes of the companies. Passenger vehicle sales of Tata Motors and M&M declined 17.1% and 18.7%, respectively during the month.
Sales of General Motors India too saw a decline in wholesale volumes by 42.8%.
Two-wheeler sales, on the other hand, continued to grow. Hero MotoCorp, the biggest two-wheeler maker, registered a growth of 8%, while Honda Motorcycle & Scooter India grew 55% during the month. Bajaj Auto, saw a marginal rise in numbers by 2.7%.