Stimulus paying off?

The country’s obsession with cars and two wheelers hit a new high in November, with at least three auto biggies —Maruti Suzuki India Ltd, Hyundai Motor India Ltd and Hero Honda Motors Ltd — posting all-time high monthly sales figures during the month. See graphic

The country’s obsession with cars and two wheelers hit a new high in November, with at least three auto biggies —Maruti Suzuki India Ltd, Hyundai Motor India Ltd and Hero Honda Motors Ltd — posting all-time high monthly sales figures during the month.

HT Image

Courtesy a very bleak November in 2008, when the slowdown in the aftermath of global financial crisis had first made its presence felt in the country, the industry’s year-on-year growth is inflated (see graphic).

The government’s stimulus packages also helped in achieving the growth and the industry was unanimous that any withdrawal at this juncture will upset the growth story.

But even in isolation, the November figures are flattering coming in right after an equally robust festive October.

“One cannot expect to sustain a 92 per cent growth in the domestic market, month after month, but I do think that these volumes can be managed,” said Arvind Saxena, senior vice-president, marketing and sales, Hyundai Motor India Ltd.

“What is heartening is that the growth comes in November, when there were no festivals and we had just seen a lot of buying in the previous month.

To not only maintain those volumes but better it is remarkable and gives us confidence that it can be sustained,” Saxena said.