Increasing Car Sales in India

Indias passenger car sales in the fiscal year ended March Thirty eight rose to a record Eight eighty two,Zero Nine four units, a gain of seven.six percent from a year earlier. Car sales have risen in seven of the past ten years, helped by interest rates that have fallen by Fifty percent in the past five years.

Suzuki, Honda and other automakers will invest a combined Three billion dollar by Two thousand ten to build vehicles in India. Rising incomes in one of the worlds fastest growing economies, combined with low interest rates, may help Indias car sales increase ten percent every year through Two Thousand ten. Only seven in One Thousand people own a car in India, where sales have reached record levels for three consecutive years.

May has been good for passenger car segment. Passenger car sales in May grew three per cent from Fifty two thousands five hundred and eighty three units last year to Fifty four thousands two hundred and two units this time round.

Market leader Maruti Udyog saw a sharp pick up in sales. Its sales grew sixteen.seven per cent, selling thirty two thousands three hundred and sixty one units this May compared to Twenty seven thousand five hundred and seventy seven units same month last year. Hyundai also saw a rise in its sales. Its sales improved by seven.five per cent to Eight thousand hundred and seventy four units this year from Seven thousand six hundred and seventy five units last May.

The Indian unit of US auto giant Ford Motor Company is making an aggressive sales and marketing drive, mainly focus sing on non metros, for its mid size Ikon car and is also increasing its dealers to sixty six by the year end, a top company official has said. In the first step, the company has identified the non metro cities and towns for opening dealerships and is in the process of implementing a paperless web based software system for tying up its dealers in the country.