The domestic auto industry recorded a growth of 26% in 2009-10 on the back of stimulus measures and launch of new models. Total sales touched a whopping 12,292,770 units compared with 97,24,243 in the previous year, making India the fastest growing auto market in the world next only to China, which grew 42%. According to industry body Society of Indian Automobile Manufacturers (Siam), the auto sector is set to grow at 10-12% in 2010-11, despite concerns of tightening money supply and escalating raw material costs.
Siam president Pawan Goenka said the growth in the domestic market was spearheaded by passenger car and two-wheeler sales, growing at 25.10% and 26%, respectively.
In 2009-10, car sales clocked a record 15,26,787 units from 12,20,475 units in the April-March period the previous year. In March 2010, overall passenger car sales hit 1,55,600 units, an increase of 20% compared to March last year. ?Passenger car and two-wheeler sales in 2009-10 is the highest ever; however, it needs to be seen in the context of the zero growth seen in 2008-09,? Goenka said. Motorcycle sales increased 26% in the year to 73,41,139 units against 58,31,953 units in 2008-09. Total two-wheeler sales increased by 26% to 93,71,231 units compared to 74,37,619 units last year.
Among leading automakers, Maruti Suzuki created a record in 2009-10, selling more than a million units. In the last fiscal, its domestic sales grew 20% at 7,65,526 units. Hyundai Motor sales jumped 29% at 3,14,967 units.
Two-wheeler giant Hero Honda witnessed sales jump 23.14% in the last fiscal to cross the 4 million-mark?42,93,991 units? while that of its rivals, the Pune-based Bajaj Auto?s sales rose 39% to 17,81,748 units.
Sales of commercial vehicles during the last fiscal posted a healthy growth of 38% to 531,395 units against 384,194 units in 2008-09. Medium and heavy commercial vehicles contributed nearly half the overall CV sales to 245,058 units. Light commercial vehicles sales stood at 286,337 units in the same period. ?In my opinion, LCV will be the best performing segment for auto sector this year, due to new launches and pent-up demand for such vehicles,? Goenka said.
In March 2010, overall auto sales rose 37% to 12,26,944 units compared to 8,94,079 units in March 2010. Though the industry seemed confident of maintaining a healthy growth of 10% plus in the current fiscal, rising input costs, hike in excise duty and tightening money supply are keeping them on their toes.