Automobile sales for the month of May rise but manufacturers are worried
Automobile sales for May, 2015 have witnessed a steady rise but auto companies are not celebrating. A range of offers and discount schemes that were introduced to lure potential customers had pumped up sales figures. However, the growth in the rural areas was sluggish and this has got the industry worried.
Market leader, Maruti Suzuki, posted a 13.03 per cent rise in sales for the month of May. The company said that sales were strong owing to the demand for its new models such as the Ciaz, Swift and Swift Dzire. The company's domestic sales crossed one lakh units this month. Maruti Suzuki is expected to launch the Celerio diesel on June 3, 2015 and it could be another sales boost for India's largest carmaker.
Tata Motors saw a 20.67 per cent rise in sales owing to its new models, the Zest and the Bolt. The company has just launched the GenX Nano and hopes to sustain the momentum.
Hyundai's sales grew by 3 per cent owing to the sales of the new Elite i20. The Korean giant is hoping to upset the compact SUV applecart with its soon to be launched ix25 that's now officially called Creta.
Domestic manufacturer, Mahindra and Mahindra posted a decline in sales by 6.86 per cent and it hopes that sales will be revived after its most recent launch, the new 2015 XUV500. Ford India too saw a 21.92 per cent decline in sales and the company is banking heavily on it next offering, the Figo Aspire.
The two-wheeler industry also witnessed a poor month. Hero MotoCorp's sales dropped by 5.41 per cent. Honda Motorcycle and Scooter India (HMSI) as well as TVS posted marginal growth in sales by 3.29 per cent and 6.78 per cent, respectively.
Industry experts feel that rural demand is key to better sales and reducing interest rates could be one of the factors that could boost sales.
Vishnu Mathur, director general, Society of Indian Automobile Manufacturers (SIAM), said, "We are already feeling the pressure of a slowdown in the rural economy. Sales in the rural regions are critical for growth in some of the important categories, especially motorcycles."