Following two consecutive years of slump where passenger car sales in India is concerned, the last fiscal has seen a revival of sorts, with major automakers reporting double digit growth.
Top automakers in India, Maruti Suzuki, Hyundai Motors and Honda have ended the April 2014 to March 2015 period on a strong note. These three automakers have reported double digit growth indicating that car sales in the country are on the brink of recovery, following a two year slump. The three auto majors saw some successful launches during the period which contributed to this increased sales. Maruti launched its Ciaz sedan while Honda brought in the new City and Mobilio, while Hyundai introduced the Elite i20.
The fiscal April 2014 to March 2015 was not however favorable for Mahindra, Ford, General Motors, Volkswagen, Renault and Skoda Auto, all of whom reported a dip in sales figures. Toyota and Nissan Motors also recorded improved sales with Toyota sales increasing from 1,28,811 units in FY 14 to 1,41,347 in FY15, an increase of 10% while Nissan sales increased 24% from 38,391 units in FY14 to 47,462 in FY15.
However, despite a revival in sales in FY15, it is estimated that the slump in the auto sector will continue into the future especially where rural sales are concerned considering unseasonal rains which have adversely affected crops. The same holds true in urban markets as well due to weaker corporate earnings though lower fuel costs and softening of interest rates expected to be announced in early April are likely to bring about a change for the better with a spurt in demand.
Note: Sales figures of luxury car makers are not included as they are yet to share their numbers.