Maruti and Hyundai sales ride high on stable govt

The country’s largest carmaker Maruti Suzuki India Ltd (MSIL) and arch- rival Hyundai Motor India Ltd (HMIL) reported an upswing in sales during May as market sentiment turned positive on the formation of a stable government. Honda Motor India, with its popular Amaze and Honda City models, and Ford India, with its hot- selling EcoSport, also reported increase in sales.
MSIL said that its domestic sales rose 16.4 per cent during the month to 90,560 units from 77,821 units in May 2013. The growth was on the back of higher sales in the compact segment comprising Swift, Estilo, Ritz, which jumped by 53.9 per cent to 26,394 units as against 17,147 units in the same month last year. Sales of popular compact sedan Dzire rose 9.8 per cent to 18,953. Sales in the mini segment, including M800, Alto, A- Star and WagonR, dropped 7.5 per cent to 29,068 units.
MSIL chief operating officer (marketing and sales) Mayank Pareek said, ” In the last three years, we did not see any growth. It is for the first time that buyers are not only inquiring but also coming ahead and making purchases. After a long time, people have started buying.”HMIL reported 12.80- per cent increase in domestic sales at 36,205 units last month as compared to 32,102 units in May 2013. Honda Cars India reported 17.8- per cent increase in domestic sales at 13,362 units during the month.
Ford India sales jumped by 51.24 per cent to 6,053 units in May. Ford India executive director (marketing, sales and service) Vinay Piparsania said, “A stable government is a positive development for overall economic and business sentiment in the country.
We are hopeful that the new government will support ongoing industry- friendly initiatives like the excise duty reduction.” Homegrown M& M and Tata Motors reported decline in sales. M& M reported 15.68- per cent decline in sales at 35,499 units last month as against 42,104 a year earlier.