India’s top automobile companies recorded robust sales growth to dealers in November on Monday. This growth is boosted by an earlier tax deduction that lowered the prices of vehicles and increased the demand.
The automobile market leader Maruti Suzuki reported a 21% year-on-year rise in domestic sales. This sale is driven by sport utility vehicles as well as small cars like Alto. Mahindra & Mahindra and Tata Motors also recorded a 22% sales jump whereas brands like Hyundai Motors sales only grew 4.3 %. These companies hold more than 80% of Indian market.
India in late September cut the goods and services tax on SUVs with engine which excides their capacities from more than 1500 cc to 40% from about 50% and on small cars to 18% from 28% in a bid to boost consumer spending and increase growth instead of US traff.
The three top companies had also observed a rise in sales in October. The Indian consumers are upgrading to premium models have also helped overall demand as per the experts.
The small car segment of Maruti Suzuki has observed the biggest rise in sales; company raised its sales to 18.9 percent in November whereas the sales of utility vehicle of Maruti Suzuki observed 22.9% rise in sales.
The companies are facing difficulty fulfilling demand after the end of the long festive season. Maruti’s head of marketing and sales Mr. Partho Banerjee stated that “We are not able to increase the production as per the market requirement. Our production team is working on Sundays, on holidays to ensure that we are able to meet the requirement”
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
Tweets @ZiyaIbnHameed
