New models drive car sales up

New car launches in the past six months have driven sales growth despite a hike in vehicle financing. In April, new launches accounted for 17 per cent of over all sales..

With new popular cars such as the new Hyundai Santro and Pa (a model positioned between Santro and Getz), Maruti's SX4, Skoda's Fabia and Roomster, Volkswagen's Polo, and Fiat Grande Punto, amongst others, expected to be launched this year, industry estimates that new models would constitute 30 per cent of total sales. Says Arvind Jain of Religare Securities; "Our expectation is that new car launches would constitute over 30 per cent by the year end. Maruti has been an outperformer in the industry due to its launch of new cars, with a similar strategy being adopted by other companies".

The new cars which have been launched in the last six months include the Zen Estilo from Maruti, Hyundai Getz diesel, Spark from General Motors, Logan from Mahindra Nissan and Fiat Palio Stile.

For car maker Maruti, the Zen Estilo and Swift diesel, the new cars launched this year, already constitute 22 per cent of its total sales. The car maker is keeping the momentum going by launching the SX4 sedan in the premium A3 segment next week. It could also launch another hatchback in the high selling A2 segment . Escudo, its sports utility vehicle made its debut in July.

General Motors' Spark sold around 100 cars a day, since it launch on April 17, constituting over 56 per cent of its total sales. Hyundai Verna and Getz continue to reap the success of its strong brand image and already constitute 25 per cent of Hyundai's total sales. The debut of the German luxury carmaker BMW with 107 units in the first month has also added to the euphoria.