After a rough ride in the past two years, the auto sector seems to be picking up some speed with the country’s leading carmaker starting the new fiscal on an energetic note, reports fe Bureau in New Delhi. Maruti Suzuki posted a smart 27.3% year-on-year rise in sales in April driven by the mini segment cars — the segment that includes the Alto and WagonR saw sales rise a whopping 36%, suggesting that there’s a fair bit of demand at the entry level. On the other hand, the compact segment, comprising the Swift, Ritz and Dzire, grew by just 8.7%, indicating that consumers remain cautious when it comes to bigger spends. While several banks have lowered their base rates, which would translate into lower interest rates for car loans and consequently smaller equated monthly instalments, the extent of the reduction, it would appear, hasn’t been meaningful enough to prompt too many consumers.
Hyundai, for example , didn’t do as well since volumes in April grew in single digits by just 9.5%. Honda Cars India saw sales grow 14%, with the City still accounting for two-thirds of its volumes and the Amaze selling 2,862 units. Volumes at utility vehicle major Mahindra and Mahindra, however, grew a mere 1% while General Motors actually saw sales decline during the month. Among two-wheeler manufacturers that have reported numbers, Honda Motorcycle & Scooter (HMSI) reported a 9% increase in sales to 3,40,791 units although its motorcycle volumes declined marginally. Royal Enfield, a unit of Eicher Motors, posted a 42.8% increase in the domestic market to 33,118 units.