Substantial increase in car prices in May failed to dampen the spirit of car buyers as all major players witnessed a healthy growth. Hyundai Motor India Ltd (HMIL) leads the bandwagon with a growth of 47.3% in sales in domestic market, followed by Maruti Suzuki India Ltd at 14.6% and General Motors India at 7%.

While, Maruti sold 64,143 units in May as compared to 55,952 units during the same month last year, Hyundai sold 24,510 units last month vis-?-vis 16,643 units in the corresponding period in 2007 and General Motor India sold 5,789 units as compared to 5,432 units in May last year. Mahindra Renault, however, witnessed a dip of 40% in sales of Logan at 1,531 units as against 2,551 units in May 2007. Even sales of Honda Siel Cars India decline by 18% at 3,944 units as against 4,811 units in May last year.

?With disposable income on the rise, factors like high inflation and high oil prices generally do not dither people from buying cars. However, there might be a slight impact on entry-level vehicles as they are largely dependent on finance which is currently under pressure due to high interest rates,? says an analyst.

Two-wheelers managed to continue their growth spree for a second month in a row with Hero Honda witnessing a growth of 9.5% in sales in May followed by Honda Motorcycle and Scooters India (HMSI) at 8%, Bajaj Auto at 7% and TVS Motors? at 4%.

While Hero Honda sold 3,12,317 units as compared to 2,85,109 units in the corresponding month last year, Bajaj Auto sold 1,80,935 units as against 1,69,327 units in May 2007. TVS Motors? sold 1,12,770 units last month as compared to 1,08,151 units during the same month in 2007 and HMSI sold 86,083 units.