A booming economy, high incomes and ready availability of finance drove sales in the financial year 2010-11 for most car-makers, though a huge drop in export numbers dragged down Hyundai’s annual sales.
Market-leader Maruti posted a historic high selling 1.27 million vehicles during the year. Domestic sales accounted for 1.11 million units.
“The key driver is economic growth. The cconomy has grown 8.6%. Car sales are closely related to economic growth,” said RC Bhargava, chairman, Maruti Suzuki India Ltd.
Faced with production constraints, the company is building up two more plants which will come up in 2012-13.
For Hyundai, domestic sales at 3,59,371 was up by 14%, while exports substantially reduced.
Tata Motors posted a 27% surge in sales on the back of three new launches. Sales of its micro car Nano more than doubled to 70,432, while the high-end Jaguar Land Rover sales in India tripled to 891 units.
With the introduction of its small car Figo, Ford’s sales more than doubled to almost 100,000. Volkswagen sales multiplied 12 times, thanks to the India-specific Polo and Vento.
On the industry outlook for 2011-12, Bhargava said: “Early signs are good.”