The car market in India continues to grow even after the festive season.
Car sales growth traditionally dip in month of December, but this time around it grew 8%. Maruti Suzuki and Hyundai outpaced the market growing at 11.6% and 28% respectively.
The industry grew on the back of carmakers pushing sales into rural India, and increasing number of special schemes for buyers. Hyundai offered up to Rs 52,000 savings on the i10, and up to Rs 74,000 on the Verna. Similarly, Maruti offered more than Rs 50,000 savings on all its models, excluding the Baleno, which has a waiting period.
However, given the fact that last December people bought more cars in anticipation of additional 4% excise duties to be levied from beginning of 2015, growth this December surprised many. “This kind of growth is not possible if the industry sells one or two models — growth came in across models,” said Rakesh Srivastava, VP – sales at Hyundai Motors.
Ford grew less than 1% and Mahindra and Mahindra registered 4% growth.