By Santanu Choudhury
NEW DELHI-Some of the biggest car makers in India posted higher
sales in November, brightening prospects of a revival in Asia's
third-largest automobile market this year.
Sales growth at Maruti Suzuki India Ltd., Hyundai Motor Co.,
Honda Motor Co., Toyota Motor Corp. and Tata Motors Ltd., which
together control more than 70% of new car sales in India, was
driven primarily by the launch of new models, and a favorable
comparison with the weak sales last year. Others such as Mahindra
& Mahindra Ltd. and General Motors Co. struggled to win new
customers.
Sales of Maruti, India's largest car maker, surged 19.5% to
110,147 vehicles from a year earlier in November thanks to demand
for its new Alto and Celerio hatchbacks, as well as the Ciaz sedan.
Maruti's local sales grew 17% to 100,024 vehicles, while exports
surged 53% to 10,123 vehicles, the Suzuki Motor Corp. (7269TO) unit
said.
Sales at second-ranked Hyundai rose 8.7% from a year earlier to
54,011 vehicles in November.
The launch of four new products in just about an year helped
drive sales, said Rakesh Srivastava, head of marketing and sales at
the local unit of Hyundai, referring to models such as the Xcent
compact sedan and the i20 Elite hatchback.
Sales in India had fallen in the past two fiscal years as
sluggish economic growth, high fuel prices and costly loans kept
customers away from showrooms. Auto makers and analysts are,
however, optimistic that sales will rebound this year as consumer
sentiment has been improving since the country voted the
pro-business Narendra Modi government to power in May. Falling oil
prices have also made it cheaper to own cars.
Honda's vehicle sales in India jumped 64% from a year earlier to
15,263 autos in November. The Japanese auto maker has witnessed
strengthening demand for its Mobilio passenger vehicle, City sedan
and Amaze compact car.
The local unit of Toyota recorded an 11% increase in sales to
14,134 vehicles.
Local passenger vehicle sales of Tata Motors also grew 16% to
12,021 vehicles.
However, Mahindra & Mahindra Ltd. (500520.BY), the country's
largest producer of sport-utility vehicles, reported a decline in
sales. Passenger vehicle sales during the month fell 18% to 13,765
autos while sales of its four-wheeled commercial vehicles declined
3% to 12,748 autos.
Pravin Shah, chief executive of Mahindra's automotive division,
said a reduction in fuel prices in India, in line with falling
global crude oil prices, should help revive demand in the coming
months.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
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