India Car Sales Jump 9.8% Source: Dow Jones News
Post# of 94279
Posted On: 01/12/2016 3:27:02 AM
India Car Sales Jump 9.8%
Source: Dow Jones News
By Santanu Choudhury
NEW DELHI--Passenger-car sales in India grew at the fastest pace in five years in 2015, the latest sign that consumer sentiment in the world's fastest-growing major economy is picking up.
A decline in fuel costs as global crude-oil prices slid, lower interest rates--down by about a percentage point, according to the Society of Indian Automobile Manufacturers--and auto makers' price incentives helped drive the increase. Sales last year were up 9.8% to 2.03 million cars, accelerating from 2014's 2.5%, according to data issued Monday by the industry body.
That followed a decline of 9.9% in 2013 and rises of 2.9% and 4.3% in 2012 and 2011, respectively.
Consumer sentiment in India has improved since Prime Minister Narendra Modi's government took office in 2014 pledging to make doing business easier and drive economic growth.
Auto companies in India have drawn buyers by launching new models, such as Renault SA's Kwid small car, Maruti Suzuki India Ltd.'s Baleno hatchback and Ford Motor Co.'s various Figo models.
"Growth is fueled by positive urban-customer sentiments, gradual uptick in the economy and hope that the economy will do much better in the coming quarters," said auto-industry analyst Abdul Majeed, a partner at accounting firm Price Waterhouse. "There are many positive indicators to support the growth compared to couple of negative indicators."
Sugato Sen, deputy director general of the industry body, said auto makers are concerned about continued weak demand in rural and semiurban areas, where two years of insufficient monsoon rains have hurt agricultural activity and farmers' incomes. Overall, though, "performance in 2015 has exceeded our expectations," he said.
In all, sales of cars, sport-utility vehicles and minivans in India rose 7.86% last year, according to the association, including a 3.6% rise in SUV sales to 565,638.
Truck and bus sales increased 7.6% to 652,591 units, slightly surpassing the association's estimate of 6% to 7%, Mr. Sen said. The 30% growth in sales of heavy and medium trucks and buses to 280,388 units--due to rising infrastructure activity and increased movement of goods and people--offset a 4.7% drop in sales of smaller trucks and buses to 372,203 units, due mainly due to lower demand in the semiurban and rural areas.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
(END) Dow Jones Newswires
January 11, 2016 06:42 ET (11:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Santanu Choudhury
NEW DELHI--Passenger-car sales in India grew at the fastest pace in five years in 2015, the latest sign that consumer sentiment in the world's fastest-growing major economy is picking up.
A decline in fuel costs as global crude-oil prices slid, lower interest rates--down by about a percentage point, according to the Society of Indian Automobile Manufacturers--and auto makers' price incentives helped drive the increase. Sales last year were up 9.8% to 2.03 million cars, accelerating from 2014's 2.5%, according to data issued Monday by the industry body.
That followed a decline of 9.9% in 2013 and rises of 2.9% and 4.3% in 2012 and 2011, respectively.
Consumer sentiment in India has improved since Prime Minister Narendra Modi's government took office in 2014 pledging to make doing business easier and drive economic growth.
Auto companies in India have drawn buyers by launching new models, such as Renault SA's Kwid small car, Maruti Suzuki India Ltd.'s Baleno hatchback and Ford Motor Co.'s various Figo models.
"Growth is fueled by positive urban-customer sentiments, gradual uptick in the economy and hope that the economy will do much better in the coming quarters," said auto-industry analyst Abdul Majeed, a partner at accounting firm Price Waterhouse. "There are many positive indicators to support the growth compared to couple of negative indicators."
Sugato Sen, deputy director general of the industry body, said auto makers are concerned about continued weak demand in rural and semiurban areas, where two years of insufficient monsoon rains have hurt agricultural activity and farmers' incomes. Overall, though, "performance in 2015 has exceeded our expectations," he said.
In all, sales of cars, sport-utility vehicles and minivans in India rose 7.86% last year, according to the association, including a 3.6% rise in SUV sales to 565,638.
Truck and bus sales increased 7.6% to 652,591 units, slightly surpassing the association's estimate of 6% to 7%, Mr. Sen said. The 30% growth in sales of heavy and medium trucks and buses to 280,388 units--due to rising infrastructure activity and increased movement of goods and people--offset a 4.7% drop in sales of smaller trucks and buses to 372,203 units, due mainly due to lower demand in the semiurban and rural areas.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
(END) Dow Jones Newswires
January 11, 2016 06:42 ET (11:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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