Demand revival puts auto sales in top gear, Maruti posts 50% growth

Business Standard Demand revival puts auto sales in top gear, Maruti posts 50% growth

Auto sales, a key indicator of the macro economy, showed significant growth in July, with passenger vehicle volumes improving on the back of a healthy order book and an uptick in enquiries and bookings in urban and rural areas. The wage revisions for government employees have also likely aided demand.

India’s largest carmaker, Maruti Suzuki, posted total sales of 162,462 units in July 2021 as against 108,064 units during the same period last year, registering a 50 per cent growth.

The company’s total sales in the month include domestic sales of 136,500 units, sales of 4,738 units to other Original Equipment Manufacturers (OEMS), and 21,224 units for exports.

Maruti said that domestic sales in July remained lower than the previous high recorded during the same month in 2018-2019 owing to the pocket lockdowns in different parts of

the country. The company said that it is witnessing an encouraging revival in demand after a slowdown due to the impact of the second wave.

“With fast unlocking happening across the country, we are witnessing a good recovery, and in July we have seen a pickup in enquiry that is roughly 85 per cent of Q1 of the last financial year,” said Shashank Srivastava, senior executive director, marketing and sales at Maruti Suzuki.

Hyundai, the country’s second largest carmaker, too, has reported a 45.9 per cent year-onyear growth in sales. “A positive growth momentum is clearly visible in the passenger vehicle industry, with the stabilisation of macro-economic factors, good monsoons and increase in consumer shift towards personal mobility,” said Tarun Garg, director for sales, marketing and service, Hyundai Motor India.

Mumbai-based Tata Motors, which has models such as Nexon, Harrier and Safari in the domestic market, sold 54,119 vehicles in July — a 19 per cent growth compared to the same period last year.

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