SATURDAY, JANUARY 15, 2005
Auto industry scales 1-m mark
TIMES NEWS NETWORK
NEW DELHI: The Indian automobile industry's on a roll. It achieved two landmarks the day 2004 came to a close: First, total passenger car sales in the domestic market topped 1 million units. And second, over 6 million two-wheeler were sold in the domestic market through 2004, a first ever for the industry.
The improved sales were driven by a slew of new launches and new entrants — both in the passenger car and motorcycle categories. "The prevailing low interest rate regime, coupled with higher disposable income among young professionals have fuelled this growth," said a senior official at the Society of Indian Automobile Manufacturers (Siam).
Total passenger vehicle sales in 2004 stood at 1.03 million units. Passenger vehicles, comprising cars, utility vehicles and multi-purpose vehicles, have registered a 21.79 per cent growth year-on-year.
According to Siam latest sales data, domestic sales of passenger cars alone have shown a 22 per cent growth. Passenger cars saw a healthy 20.57 per cent jump in sales in December at 60,156 units.
The surge in two-wheeler sales was driven primarily by the growing demand for motorcycles of Hero Honda and Bajaj Auto. Total motorcycle sales rose 51.61 per cent in December alone at 4,59,458 units. "The motorcycle industry is making a second comeback," the Siam official said, referring to the improvement over the past two years when poor farm sector performance hurt rural demand.
Copyright © 2005 Times Internet Limited. All rights reserved.