As South turns frugal, rural North drives car sales | autos | Hindustan Times
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As South turns frugal, rural North drives car sales

autos Updated: Jul 16, 2009 21:18 IST
Sumant Banerji
Sumant Banerji
Hindustan Times
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The southern region, hit by the slowdown in the IT sector and the export front, is getting less savvy on automobiles while the north, spurred by an abundant rural economy, is buying more cars.

The eastern region, not a happy hunting ground for the sector in terms of investment friendliness, has improved its marketshare across all segments in the vehicle sales— cars, two and three wheelers, multi utility vehicles and commercial vehicles.

The north has always been a big market for cars, with Delhi and Punjab leading the list.

The region’s share in car sales has gone up to 34.4 per cent in 2008-09 from 33.3 per cent in 2007-08.

Sales in southern and western regions have dropped from 29.7 to 29 per cent and 28.9 to 27.7 per cent, respectively.

“In the south, there are some states like Andhra Pradesh and Karnataka that are severely impacted by the slowdown in the IT sector and sales have been sluggish there,” a TVS Motor official said.

North is, however, the leader only in cars and it is the west zone, which calls the shots on two wheelers, while the south tops in commercial vehicle sales.

South also remains a big market for mopeds with 82 per cent share. It is also a big market for three wheelers with a 46.5 per cent share.

All segments put together, the western regions of the country tops the list in automobile sales with a 32 per cent share, followed by south at 30.96 per cent. The east remains the most sluggish market for almost all segments but has shown maximum improvement in the last one year.