(Reuters) – India’s overall car sales to dealers saw a slight increase in January, data released by automakers on Saturday showed, as inflation-wary customers continued to delay purchases.
Domestic sales of India’s top four carmakers – which form 80% of the country’s car market – rose 1.8% from a year ago, helped by sales of market leader Maruti Suzuki’s small cars and Mahindra & Mahindra’s sports utility vehicles.
Peers Hyundai India and Tata Motors saw sales declining 5.5% and 10%, respectively, hurt by increased competition.
WHY IT’S IMPORTANT
Car sales in India, the world’s third-largest car market, have slowed after two years of rapid growth as higher inflation has squeezed buyers’ pockets.
Higher raw material costs have forced carmakers to raise prices even as they offer discounts to perk up demand.
The government’s proposal to slash personal income tax rates in its annual budget on Saturday has raised hopes of a consumption boost in the world’s fifth-largest economy, which could possibly entice more people to buy cars.
India’s auto index rallied on the day, settling 1.9% higher.
BY THE NUMBERS
Manufacturer Domestic Sales Change (%)
(units) (y/y)
Maruti Suzuki 173,599 4.1%
Hyundai Motor 54,003 -5.5%
India
Tata Motors 48,076 -10%
Mahindra & 50,659 18%
Mahindra
Toyota 26,178 12.9%
Kirloskar
Motor
Kia India* 25,025 5%
JSW MG Motor 4,455 256%
India
*Exports included
(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)
