Indian auto industry grows 13 pc; car sales slump

New Delhi, Apr 13 (UNI) Riding high on motorcycles, the Indian automobile industry cruised to a 13 per cent growth during 2005-06 over last year, even as passenger car sales hit a speedbreaker during the period.

Passenger car sales slumped to a single digit growth of 7.55 per cent during 2005-06 after registering a more than healthy growth of 17.7 per cent rise in the year ended March 31, 2005.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in the year ended March 31, 2006, stood at 8,82,094 units against 8,20,179 units in 2004-05.

Analysts say the eight per cent excise duty cut on small cars announced in the Budget will jack up sales during the current fiscal. ''This is evident from the high growth rate during March 2006,'' they said.

Maruti Udyog Ltd (MUL), which enjoys 51 per cent market share, grew by only 4.75 per cent during 2005-06, a climbdown from last year's growth of 13.6 per cent.

MUL sold 5,61,819 units during the year as compared to 5,36,301 in 2004-05. Domestic sales grew 8.1 per cent to 5,27,038 units compared to 4,87,402 units during last year.

The company sold 53,171 Swift cars since its launch in end-May 2005. Exports declined by as much as 28.87 per cent to 34,781 units during the period.

Hyundai Motor India Ltd (HMIL) closed the financial year with a growth of 11.8 per cent in the domestic market. HMIL sold 1,59,016 units as against 1,42,199 units last year. Exports jumped 24.3 per cent to 1,02,092 units.

Tata Motors reported a growth of 5.46 per cent at 1,88,855 units as compared to 1,79,076 units in 2004-05.

Rising fuel prices and hike in interest rates threw a spanner in the wheels of the passenger car industry during 2005-06. No wonder, for the automobile industry, which recorded a relatively lower rate of growth (6 per cent) during the past 10 months compared to the blockbuster years earlier, the excise duty cut from 24 per cent to 16 per cent on small cars was among the much-awaited announcements.

The Indian motorcycle industry continued to cruise on the highway as sales soared by 17.1 per cent in the domestic market and touched 58,15,417 units against 49,64,753 units in 2004-05.

Overall, the two-wheeler segment, including scooters and motorcycles, grew 13.6 per cent at 70,56,317 units against 62,09,765 units in 2004-05.

''Backed on the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of the rural people, the two-wheeler segment continued to post a steady growth,'' SIAM said.

Hero Honda, the country's biggest two-wheeler company, sold 29,08,084 vehicles during the year as against 25,57,385 vehicles last year. This includes the sales of scooterette that Hero Honda introduced in February this year.

Bajaj Auto sales grew 26 per cent to 18,54,183 units from 14,71,616 units during 04-05. Exports went up 33.5 per cent to 1,74,907 units as against 1,30,949 units.

The commercial vehicle segment clocked a growth rate of 10 per cent to 350,683 units compared with 318,430 units in the previous year.

Tata Motors, India's biggest bus and truck maker, saw sales rise by 13 per cent to 2,15,052 units against 1,90,003 units last year.

Second in the pecking order Ashok Leyland posted a 18.4 per cent growth over last year at 56,747 units.

The medium and heavy commercial vehicle (M&HCV) segment grew by 4.5 per cent and the Light Commercial Vehicles (LCV) segment registered a growth of more than 19 per cent during 05-06 compared to 04-05.

The three wheeler segment posted a growth of 17 per cent during the same period.

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