India’s utility vehicles sales rise in Dec, demand for entry-level cars muted

BENGALURU (Reuters) – India’s biggest car maker said last December that sales of more expensive utility vehicles rose by double digits.

Auto sales are of keen interest as they are one of the key indicators for evaluating private consumption, which accounts for more than 50% of the weight in calculating a country’s economic growth.

Utility Vehicles (UV), one of the fastest growing segments, saw sales increase 22.3% for Maruti Suzuki India (MRTI.NS) and 62.2% for Mahindra & Mahindra (MAHM.NS) became.

Utility vehicles have grown in popularity this year, nearly matching the production of entry-level passenger cars and sedans, according to the Indian Automobile Manufacturers Association.

Jay Kale, senior vice president of Elara Securities, said:

India’s retail price index (INCPIY=ECI) slipped below the central bank’s upper limit for the first time in November this year, but the latest unemployment data showed the unemployment rate rose to a 16-month high. I’m here.

Mansi Lall, research analyst at Prabhudas Lilladher, said, “The price hikes made by car companies represent a huge leap for low and middle income buyers.

Hero Motocorp (HROM.NS), the world’s largest bicycle maker, reported a slight decline in sales, while Bajaj Auto (BAJA.NS)’s motorcycle sales fell 22%. TVS Motor Co’s (TVSM.NS) motorcycle sales also fell by 3.3%.

Mahindra saw a 27.2% increase in tractor sales, which shows the demand and agricultural income situation in the rural economy, while Escort Kubota (ESCO.NS) saw an increase of 18.7%.

The commercial vehicle (CV) segment posted double-digit growth in December, with industry leaders Eicher Motors (EICH.NS) and Ashok Leyland (ASOK.NS) posting sales increases of 17.3% and 44.9% respectively.

Below is a list of reported sales figures for major Indian car companies so far.Farm Equipment – 23,243 units, +27.2% ** Tata Motors (Domestic Total) – 72,997 units, +10.1% ** Bajaj Auto – 281,486 units, -22.3% ** Eicher Motors Trucks and Buses – 7,221 units, +17.3% * * Eicher Motors Motorcycles – 68,400 units, -7.2% ** Ashok Leyland – 18,138 units, +44.9% ** Hero MotoCorp – 394,179 units, -0.2%

Reported by Nandan Mandayam, Bangalore. Edited by Sohini Goswami

Our standards: Thomson Reuters Trust Principles.

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