India might be speeding on the growth path, but the automobile sector is unable to keep pace. For the third month in a row, two-wheelers and commercial vehicles recorded lower sales as compared to June 2006.

Passenger car sales were a mixed bag with Maruti Udyog, Honda, General Motors, Mahindra & Mahindra and Skoda registering a positive growth. Hyundai and Tata Motors, however, witnessed lower sales.

Although interest rate hikes have impacted the industry growth, it is the two-wheeler and commercial vehicle segment that is bearing the brunt of this. Launches of new models have been fuelling demand for passenger cars and this is evident through the volumes that Maruti, Honda and GM have witnessed.

Maruti, the largest passenger carmaker, recorded a 25% growth led by its Swift Diesel and the newly launched sedan SX4. Honda, too, has been riding on the success of its Civic, while General Motors witnessed high volume growth on the back of its Chevrolet Spark and Aveo.

Two-wheeler and commercial vehicles continued their sluggish run as high interest rates coupled with the monsoon has failed to reverse the trend. Industry experts said this slowdown is expected to continue.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

Free Member, Joined :06/09/2007
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