Diwali lights up automobile industry sales

Riding on the increased consumer demand during the festival season, Indian automobile companies recorded high growth in November.

While two-wheeler companies recorded higher growth, car makers reported moderate growth, despite booking large orders during the festival season.

India's largest two-wheeler company Hero Honda reported a 15 per cent increase in motorcycle sales at 2.35 lakh in November 2004 against an annual high of 2.04 lakh motorcycles during the same period last year. Hero Honda said that capacity constraints finally capped its growth.

"Retail have grown phenomenally, leading to bookings all across India. Cumulative sales of the company have grown by a phenomenal 29 per cent from 13,17,248 motorcycles sold during April - November 2003 to 17,05,230 motorcycles sold during the same period in 2004," the company said in a statement.

Bajaj Auto has posted a 47.2 per cent jump in sales of two-wheelers at 1,66,626 units for November compared to 1,13,164 units in the same period last year.

For Bajaj motorcycle sales rose a record 68.9 per cent at 1,54,137 in November as against 91,257 units in the same month last fiscal, the company said in a release here today.

For Bajaj sales of three-wheelers declined by 25.8 per cent at 15,734 units in November 2004 against 21,199 units in November last year. The total two and three wheeler vehicle sales were up by 35.7 per cent at 1,82,360 in November 2004 against 1,34,363 units in the same period last year.

India's third-biggest motorcycle maker TVS Motor today said that its motorcycle sales rose 35.4 per cent in November 2004 at 65,066 units over 48,052 units in November 2003 Scooter and moped sales grew by 22.8 and 7.36 per cent at 20,646 and 22,118 units respectively. Maruti Udyog, India's largest car manufacturer, today reported a 7.8 per cent jump in sales in November even as Maruti-800 sales saw a slump.