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Car sales back to single digit in September

Industry experts, however, believe the ongoing festive season will drive growth for industry in coming months

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Car sales slipped back to single digit growth in September after witnessing double digit growth in the past few months, even as industry experts remain optimistic about the ensuing festive season which will continue to drive growth for the industry in the coming months.

The overall wholesale dispatches for September grew 7% compared to same month last year, as per the data released by the top 9 car manufacturers.

Domestic wholesale dispatches of Maruti Suzuki – the country's biggest carmaker grew 9.8% in September compared to same period last year as it sold 99,290 units during the month. The company's growth slowed down as its mini segment models such as Alto and Wagon R de-grew 13.4% last month.

While other carmakers maintained the growth momentum with Hyundai Motor India, the second largest car company - witnessing a growth of 14.5% in the domestic market.

Biggest utility vehicle maker, Mahindra & Mahindra (M&M), returned to its number three position in terms of volumes as it sold 19,893 passenger vehicles during the month, achieving a growth of 5%, while Honda Cars India sold 15,015 units in September. New model launches continued to drive sales for the Japanese car manufacturer as it grew 45% compared to September last year.

Pravin Shah, chief executive, automotive division & international operations (AFS), M&M, said in a statement, "The sales numbers for September have been encouraging and we are glad that the automotive industry is turning the bend. We expect the ensuing festive season to bring in some much needed cheer with a slew of new launches from manufacturers as well as a reduction in the current account deficit and stable and reducing fuel prices."

The company recently launched its new Generation Scorpio.

While domestic sales of Toyota Kirloskar Motor grew 4.47%, companies like General Motors India and Ford India de-grew 39.42% and 36.22%, respectively for the month. Sales of Tata Motors declined 7% despite the launch of its sub-4-meter sedan – Zest.

"The growth was impacted due to Maruti numbers. Company's growth was scaled down by the mini segment, which contracted despite the festive season. However, companies like Honda and Hyundai have done well. We expect October to be good, as new launches and festive season will continue to drive the momentum for the industry. However, it is important to see the momentum post the festive period. We expect the growth to stabalise at around 6-8%," said an analyst from domestic brokerage firm, who is not authorised to be quoted.

Two-wheelers continued to report strong growth. Hero MotoCorp, the biggest two wheeler manufacturer, dispatched more than 6 lakh units in September, achieving a growth of around 30%. Sales of Yamaha India and TVS Motor grew 26.7% and 29%, respectively.

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