Led by huge demand of utility vehicles for election campaigns coupled with a lower base pushed up the sales of passenger cars by 4.2% in April at 1,02,899 units as compared to 98,752 units in the corresponding month last year. This is the third consecutive month when car sales have shown an upward trend.

According to the Society of Indian Automobile Manufacturers (Siam), the overall automobile industry registered a growth of 10.76% last month at 8,94,058 units vis-?-vis 8,07,183 units during April last year.

While Maruti Suzuki India, the country?s largest passenger car manufacturer with a market share of over 51% registered a growth of 8.61% at 56,221 units as compared to 51,766 units in the same month last year, sales at Hyundai Motor India went up by 3.49% at 22,241 units as against 21,492 units a year ago and Tata Motors’ saw a marginal increase in sales at 11,202 units as against 11,193 units in April last year. However, despite this industry experts and analysts feel sustainable growth rates are is yet to be achieved. ?April numbers are by no means an indication of a turnaround in the industry and a sustainable recovery will happen only from the third quarter onwards. Whatever growth we?ve seen is largely because of the lag effect of the stimulus packages, some sort of ease in liquidity from March onwards and greater demand from rural areas that have not been badly hit by liquidity crunch,? says Abdul Majeed, analyst, Price Waterhouse. While Majeed is confident that recovery of Indian automobile sector would be faster than any of the developed countries, he feels it would mainly be determined by the government that is formed at the Centre and its policies for the revival of the sector.

?On a month-on-month basis, all the segments, except for the two-wheeler, recorded lesser sales compared with last month. Signs are not very encouraging and things are still very sensitive,? Sugato Sen, senior director, Siam said, adding that the percentage growth rate is mainly because of the low base effect of last year.

According to Rakesh Batra, national head (automotive practices), Ernst & Young, the double-digit growth in the total sales is largely because of rising demand for two-wheelers. ?While growth in April is in line with the general forecast of 3-5% for the passenger vehicle category for 2009-10, the jump in two wheelers have pushed the overall sales to double digit,? he says.

As per Siam, total two-wheeler sales in April surged by 13.71% to 7,00,995 units as compared to 6,16,468 units in the same month last year. Motorcycle sales grew by 12.11% at 5,62,357 units as against 5,01,592 units in April 2008, while scooters posted a growth of 19.91% at 97,129 units as against 81,002 units in April last year.

Hero Honda Motors? registered a 25.87% surge in motorcycle sales at 3,48,132 units in April as compared to 2,76,580 units in the year-ago period, Bajaj Auto posted a decline of 22.88% at 1,06,516 units as against 1,38,117 units in the corresponding month last year.

Even sales of Chennai-based TVS Motors declined by 10.06% at 44,238 units. Honda Motorcycle & Scooter India, however, saw its bike sales growing by 93.5% at 39,136 units compared to 20,220 units in the year-ago period.