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Indian auto makers post good sales growth in July

Category  :  Industry
Date  :  Aug-03-2010 12:28

The car sales in India in July were boosted due to positive business sentiment, soft interest rates and new models.But, however, the rising concern for the Indian automakers has been the rising inputs costs that have kept their margins under pressure, in spite of high sales.Meanwhile, the auto maker''s top line has increased at a decent speed.But, however, there has been impact on margins. Auto stocks, however, are under pressure due to higher input costs.In the meantime, Maruti Suzuki registered 33 per cent jump in sales in the domestic market to 90,114 units, against 67,528 units in the same month last year.Hyundai Motor India also reported a 24.2 per cent jump in domestic sales to 28,811 units in July, 2010, from 23,193 units in July, 2009.Tata Motors, however, posted a growth of 52 per cent for passenger cars.These were boosted due to raised Nano dispatches and the Indigo Manza. On the other hand, Tata witnessed a 26 per cent jump in its commercial vehicle sales.Mahindra & Mahindra also witnessed sales jump by 19.79 per cent to 26,303 units last month from 21,957 units in the same month in 2009.Earlier, The country"s auto export has touched a record high of 179,130 units in May 2010. The surge in the exports was mainly possible on the back of two-wheeler makers Bajaj Auto and TVS Motor Co posting impressive overseas sales.As per the Society of Indian Automobile Manufacturers (SIAM), auto export from the country stood at 179,130 vehicles in May 2010 as against 119,749 units in the same month last year, making a surge by 49.59 %.Mr. Vishnu Mathur, Director General of SIAM has said that the total overseas sales for all categories in last month were the best ever for the month of May 2010.Motorcycle segment was the largest contributor in Auto exports with 116,832 units, followed by passenger car at 32,649 units.The growth recorded in motorcycle segment was 49.11 %, while passenger cars grew by 10.23 % in May as compared to the same month 2009.Bajaj Auto has exported 77,762 units as against 51,419 units in May 2009, recording a rise of 51.23 %.TVS Motor Company''s made recorded a surge in export by 50.89 % at 15,587 units as against 10,330 units in the corresponding period of the last year.Mr. Mathur said the sales in export markets were very impressive. It is despite the fact that the scrap-page incentives offered in some European countries for passenger cars are over.However, in order to boost the demand for Automobiles after the downturn, some of the European countries offered tax incentives to consumers under scrap-page programme to buy small cars in exchange of their old ones.Besides, the country''s largest car exporter Hyundai Motor India''s overseas sales, however, fell by 2.33 % at 19,657 units as against 20,125 units in the corresponding month of 2009.Maruti Suzuki India has recorded a surge by 33.38 % to 12,020 units from 9,012 units in the same month 2009.In three-wheeler segment, export surged by over two-folds at 19,918 units compared to 7,576 units in the year-ago month.Bajaj Auto''s exported 18,202 units of three-wheelers in May this year, a jump of over two-folds compared to 7,107 units in the corresponding month in 2009.

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