Tuesday, September 08, 2009

The domestic auto industry posted a robust over 24 percent jump in August sales, fuelling hopes of an even better performance in the coming festival season. According to the Society of Indian Automobile Manufacturers (SIAM), the industry sold 10,08,702 units in August as against 8,11,341 units in the same month last year.

Passenger car sales continued to grow for the seventh straight month for August, up 25.59 percent while sales for motorcycles soared by 25.94 percent for the same month, SIAM said.

In terms of units sold, domestic passenger car sales rose to 1,20,669 from 96,082 units in the same month last year, while bikes increased to 6,11,173 units against 4,85,270 units in the corresponding month a year ago.

"During the last few months, sales were consistently growing. Of course, in last month it was fueled by some stock build-up at the dealer level for the anticipated festive demand," SIAM Senior Director Sugato Sen told reporters at New Delhi on Tuesday.

The low-base effect during the same period last year also had a positive impact on sales, he added.

Asked about the expected demand in the festive season, Sen said: "Government has announced that the last installment of the pay commission (revision) will be released, this will help people to fund their purchases... Also lot of activities in the infrastructure sector are going on... The growth trend is expected to continue."