The Indian automobile industry reported 26.2% growth in vehicle sales during 2010-11, mainly riding on the back of robust economic growth, more focus on rural areas and new model launches.
The Society of Indian Automobile Manufacturers (SIAM), however, forecast a slowdown in the rate and predicted a 12-15% growth in 2011-12. It also said the Indian industry was expected overtake Brazil to become the sixth largest auto market in the world during this fiscal.
According to figures released by SIAM, total vehicles sales in India stood at 1,55,13,156 units compared to 1,22,95,397 units in the previous financial year.
“We have ended the year on a reasonably high note. We have reached a very very strong base after a consistent good growth in the last six quarters,” SIAM president Pawan Goenka told reporters here.
He said a variety of factors, including good GDP growth, higher spending on infrastructure development, strong consumer confidence, government’s focus on rural areas, moderate price hike by the auto makers despite steep rise in commodity rates and introduction of new models, helped the industry register the gains in the last fiscal.
Market leader Maruti Suzuki’s sales during last fiscal jumped by 26.2% at 9,66,447 units, while its rival Hyundai Motor's sales increased by 13.9% to 3,58,904 units. Tata Motors witnessed a rise of 27.2% at 2,56,202 units.