Auto market revs up again in May

Updated: Jun 3 2014, 05:40am hrs
After sliding for almost two years, car sales bounced back in May, up 8-10% year-on-year, a combination of both a low base and better consumer sentiment. Dealers are hoping to do brisk business with newly launched models from Maruti Suzuki, Honda and Ford mainly the petrol versions seeing demand. Diesel vehicles appear to be less popular right now; UV specialist Mahindra & Mahindra was one of the few to see sales falling in May.

Two-wheelers sales, which have picked up over the past few months on the back of a strong rural demand after good monsoons, continued the strong show. Hero, Bajaj, Honda and TVS, all saw growth in demand, with most companies now operating their plants at optimum levels to cater to the high demand.

In an indication of improving economic activity that could help boost commercial vehicle demand in the near future, freight rates on key trunk routes in May also went up 4-5%, independent agency IFTRT said.