Passenger car sales up 11 pc in July

New Delhi, Aug 9 (UNI) While car makers are managing to withstand the impact of higher interest rates, motorcycle manufacturers are still facing the heat.

According to the Society of Indian Automobile Manufacturers (SIAM) figures released here today, domestic passenger car sales grew by 11.18 per cent at 89,548 units in July as against 80,543 units in the same month a year ago.

However, domestic motorcycle sales continue to fall and this time it is steeper by 17.25 per cent at 3,75,004 units as against 4,53,152 units in July 2006.

Out of the 13 car makers, seven registered positive growth. On the other hand, top bike makers Bajaj Auto and Hero Honda posted increase in its sales while TVS Motor posted a year-on-year decline in sales during the month.

The sales of Bajaj Auto grew to 2,920 in July as against 1,347 in the same month a year ago, while Hero Honda sold 7,861 vehicles in comparison to 6,224 during the same month last year.

TVS Motor sales dropped to 23,165 units as against 24,796 units in July 206.

''High interest rates have an adverse affect on two-wheelers because of an additional payment made by an individual in terms of total cost of ownership. This along with monsoon season has resulted in further dip in sales in the last few months,'' Director General SIAM Dilip Chenoy said.

Total two-wheelers sold in the country during the month stood at 5,03,356 units, registering a decline of 9.95 per cent as compared to 5,58,982 units sold in the year-ago period.

The burden of hardening rates was also felt on the commercial vehicles sales, which managed to grow by 2.53 per cent at 33,496 units as against 32,670 units in the corresponding month a year ago.

Domestic three-wheeler sales also registered a decline of 10.7 per cent at 10,609 units as against 11,375 units in July last year.

Exports of passenger cars touched 19,300 units in July as against 14,519 units during the same month a year ago, registering an increase of 33 per cent while exports of commercial vehicles dropped marginally by 2.4 per cent to 4,043 units in the month as compared to 4,144 units in July 206.

Exports of two-wheelers also rose 17 per cent to 74,506 units in the month.

UNI