Indian automobile industry doing well, sales up by 9.83pc

The Indian automobile industry seems to be gathering momentum once again, with April's overall vehicle sales rising by 9.83 percent, partly because of reduced excise duty in the 2008-09 Budget. According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the domestic passenger car sales managed a growth of 17.15 percent in April.

Total domestic vehicles sale in April stood at 806,238 units, against 734,103 units in the same month last year. The Union Budget 2008-09 proposed a reduction in excise duty on small cars from 16 percent to 12 percent, and a similar cut on two- and three-wheelers, and buses.

According to SIAM, the passenger car segment clocked a sale of 98,740 units during the month, against 84,283 units in the same month a year ago. Maruti Suzuki India registered an increase of 22.30 percent at 51,766 units, against 42,326 units in the same month in 2007.

Hyundai Motors sold 21,492 units during the month, against 15,697 units last year, up 36.92 percent. Tata Motors, however, recorded a decline of 17.10 percent at 11,193 units, against 13,502 units in the same month previous year.

General Motors India had a 21.65 percent jump in its sales with its hatchback Spark continuing a good run. The company's overall sales stood at 3,411 units, compared to 2,804 units last year.
On the motorcycles front, the industry witnessed a reasonably good growth in April, with the segment registering a jump of 8.31 percent at 501,592 units, against 463,091 units during the year-ago month.