Indian auto industry set to grow bigger on stronger demand

47374 Investors following Maruti Suzuki. Share this News with them.

0

Like this story, share it with millions of investors on M3

Indian auto industry set to grow bigger on stronger demand

The Indian auto industry has remained in top gear in the month of May. Clearly, FY12 has gotten off to a good start and mainly due to strong domestic demand, reports CNBC-TV18's Swati Khandelwal.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from India Business Hour on CNBC-TV18 Watch the full show » Maruti Suzuki BSE | NSE 28/05/12 Are Mutual Funds betting on Maruti Suzuki? Other Stocks in this news Tata Motors | Mahindra and Mahindra | Hero Motocorp | TVS Motor Company |

The Indian auto industry has remained in top gear in the month of May. Clearly, FY12 has gotten off to a good start and mainly due to strong domestic demand, reports CNBC-TV18's Swati Khandelwal.

Maruti Suzuki 's sales crossed the magic 1 lakh unit's mark once again despite a 13% fall in exports; overall sales came in 2% higher. Demand was strong, not for its small cars, but for its mid-size offerings Swift and Swift Dzire.

Tata Motors got a boost from its commercial vehicle business. Despite a fall in passenger vehicle sales, its CV segment grew 19% in May, pushing overall sales up 10%. Indigo and Indica are still a source for concern for the company, since sales have dropped by a sharp 35%.

Mahindra and Mahindra also saw robust double-digit sales growth, helped by its utility vehicle business. The two-wheeler makers have also been opening their throttles. Hero Honda sold over 5 lakh vehicles for the third month in a row that takes its sales beyond one million units in just the first two months of FY12 and the company says it will cross a mark of 6 million units by the end of the year.

A strong demand for motorcycles has propelled TVS Motors forward as well. Motorcycle sales have jumped 11% in May.

These companies are showing no signs of slowing down. In fact, many of them are going ahead with capacity expansion plans to cater to an expected surge in demand, especially given new launches that are on the anvil from each player.

Also watch the accompanying video.

Automotive industry shows signs of slowdown: Industrialist