Domestic car sales in India up 31 per cent in July 2009

Domestic passenger car sales in India grew from 87,901 units in July 2008 to 115,067 units in July 2009, up 31 per cent. Apart from the low base effect, the high growth percentage is also due to the continuing benefits of the government’s stimulus packages and cheap car loans. A number of new cars have been launched in the past 6-8 months, which too contributed to increasing demand. The passenger car segment in the country, saw a total growth (exports included) of 29.18 per cent, up from 114,294 units in July 2008 to 147,642 units in July 2009. Dilip Chenoy, the Director General of the Society of Indian Automobile Manufacturers (SIAM), said that the high growth rate in likely to continue in the festive season, which starts in September. The auto industry’s performance in the recent few months may be seen as a preparation for the Diwali season. The Executive Director of car company Maruti Suzuki, Mayank Pareek, said that the company has seen decent double digit growth for the past six months, but the disappointing monsoon may be a cause for worry