The demand for cars and vehicles is back because of strong monsoon so far, lower interest rates.
Car sales in India grew at a robust pace in July with market leader Maruti Suzuki India posting record monthly sales while others like Hyundai, M&M, Ford and Renault also registered strong numbers riding on positive sentiments brought by a good monsoon.
Maruti Suzuki India (MSI) said it had its best ever monthly domestic sales in July at 1,25,778 units, up 13.9% from 1,10,405 units in the same month last year.
Its growth was mainly on the back of sales of utility vehicles, including newly-launched compact SUV Vitara Brezza, Ertiga and the S-Cross, which surged over two-fold to 17,382 units in July this year from 6,916 units in the corresponding month last year.
The company's sales of mini segment cars, including Alto and WagonR, however, declined by 7.2% to 35,051 units as compared to 37,752 units in the year-ago month.
Sales of the compact segment comprising Swift, Estilo, Ritz, Dzire and Baleno increased by 4.1% to 50,362 units in July this year as against 48,381 units in the corresponding month last year.
Rival Hyundai Motor India Ltd (HMIL) sold 41,201 units in the domestic market last month as compared with 36,503 units in July last year, a growth of 12.87%.
Commenting on the sales performance, HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said the company continued to sustain growth trajectory on the strength of strong pull performance of Grand i10, Elite i20 and Creta.
The market has showed improved customer sentiments led by good monsoon, low inflation, reduced interest rates and dropping fuel prices, he said.
Homegrown utility vehicles major Mahindra & Mahindra (M&M) reported 14% increase in its domestic sales at 35,305 units last month compared with 31,087 units in July 2015.
M&M Chief Executive (auto division) Pravin Shah said: "The advent of good monsoon so far has brought in positive sentiment for the economy and that is somewhat reflected in our performance."
Ford India said its domestic sales rose 62.21% to 7,076 units last month as against 4,362 units in the same period a year ago.
Renault India also reported an over seven-fold increase in sales to 11,968 units in July as against 1,686 units same month last year.
Toyota Kirloskar Motor (TKM) domestic sales grew by 2.76% rise 12,404 units in July, 2016 as against 12,070 units in the same month last year.
Tata Motors today reported a 7.48% increase in total sales at 43,160 units in July. The company sold 40,154 units in the same month last year.
Domestic sales of Tata Motors' commercial and passenger vehicles grew 8% to 37,789 units in July over the same month of the previous year.
Sales of passenger vehicles in the domestic market grew 31% to 13,547 units last month as against 10,335 in the year-ago period, Tata Motors said in a statement.
Passenger car sales were up 43.29% at 12,209 units in July compared with 8,520 in the year-ago period. In the commercial vehicles segment, the company's domestic sales were down 2% at 24,242 units, Tata Motors said. Exports during the month were up 6% at 5,371 units compared with 5,078 sold in July 2015.
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