The Indian automobile sector is witnessing a revival according to the data compiled by the Society of Indian Automobiles Manufacturers (SIAM). The data published by SIAM shows that the car sales have risen by 31% in July to 115,067 units compared to 87,901 cars sold during the same period previous year.
Market analysts and automobile experts believe that this upswing has come due to the approaching festive season in India, a period wherein people like to make big purchases. Other factors like easy availability of loans from the banks, aggressive pricing, improving market sentiments and a slew of new launches by automobile manufacturers have also been instrumental in pushing up the demand.
Automobile manufacturers have also gained considerably on the BSE index. The stocks of utility vehicle and tractor maker Mahindra and Mahindra Ltd (M&M) have risen three folds, while Maruti has shown a rise of 148%. Reuters estimates show that the July sales for Maruti, M&M, Tata motors and Hyundai have risen by about one-thirds.
The SIAM data also reflects an increase of 9.6% from a year earlier to 37,624 units, in the trucks and buses segment.
The sales of cars in July had plunged for the first time in three last year due to the sudden economic crisis, which engulfed the global economy.Earlier in the year, the Indian government had also taken a string of measures to check the decline in automobile sales like increasing spending of National Highway Authority of India and enhancement of outlay of Prime Minister’s Gram Sadak Yojana by 59%.