Spurred by increased consumer demand during the festive season, passenger car sales in the country during October hit a two-year high growth of 34 per cent during the month, making the downturn in the earlier part of this year appear like a tale from a bygone era.
The last time car sales had grown at a faster rate in a month was in February 2007 when it had grown at 46.5 percent.
Cars alongwith commercial vehicles which grew by 52 percent during the month largely due to low base effect led to a 15.6 percent growth during the month. The figure would have been much higher had two wheelers, which constitute more than 75 percent of the overall market, had not grown at a relatively subdues rate of 10.6 percent during the month.
Cars accounted for 132,615 units in October, compared to 99,052 units in the same month last year while passenger vehicle segment, which also includes utlility vehicles accounted for 168,043 units against 126,276 units last year. Small cars continued to be in great demand with a 24 percent growth during the month but the festive season brought cheer to the battered mid and premium sized categories.
The mid size segment grew by 59 percent during the month while bigger cars almost doubled with a growth of 92.4 percent during the month.
In the two wheeler category, motorcycles retained their stranglehold with a growth of 14 percent to 611,828 units while scooter segment declined by 12.7 percent to 92,346 units.
The biggest good news however, came in the form of fourth straight month of growth for the commercial vehicle sector with sale of trucks and buses rising by 52 percent to 42,562 units during the month.
Sales of market leader Maruti Suzuki India Ltd increased by 21.5 per cent to 63,365 units from 52,153 units last year, while those of Korean Hyundai Motor India Ltd grew by 41.5 percent to 28,301 units.
Third placed Tata Motors saw its sales go up by 24.52 per cent to 17,557 units from 14,100 units last year.