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Major carmakers Maruti Suzuki India, Hyundai, Honda and Toyota today posted growth in domestic sales in July signalling revival in the automobile market that has been under a prolonged slump.
India's largest carmaker Maruti Suzuki India reported 19.9% increase in domestic sales at 90,093 units in July as against 75,145 units in the same month last year.
Its sales were driven mainly by the compact segment - comprising Swift, Estilo, Ritz - which rose 81.2% to 25,156 units during the month as against 13,882 units in July last year.
MSI said sales of its popular compact sedan Dzire rose 22.2% last month to 18,634 units as against 15,249 units a year ago.
Its rival Hyundai Motor India Ltd (HMIL) posted a growth of 12.69% in its domestic sales at 29,260 units as compared to 25,965 units in the same month last year.
HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said: "The green shoots of growth are visible with the stabilisation of macro-economic factors and near to average monsoons."
He said the demand pull created by the product launches and strong channel spread has brought down the discounts.
Honda Cars India Ltd (HCIL) also reported 39.97% increase in domestic sales at 15,709 units as compared to 11,223 units in July last year.
HCIL Senior Vice President - Marketing & Sales Jnaneswar Sen said the company's latest Honda Mobilio has received good response from the market with over 10,000 bookings since its launch.
Toyota Kirloskar Motor said its domestic sales in July stood at 11,921 units as against 11,515 units in the year-ago month, up 3.52%.
Car sales in India had fallen for the second consecutive fiscal in 2013-14 with a drop of 4.65% as the auto industry continued to struggle with demand slump due to the sluggish economy.
In order to boost the sector, the previous government had in the Interim Budget in February reduced excise duty on small cars, scooters, motorcycles and commercial vehicles to 8% from 12% earlier.
For SUVs, it was slashed to 24% from 30%, while on large cars it was reduced to 24% from 27%. For mid-sized cars it was cut to 20% from 24% previously.
The new Narendra Modi-led government has extended the reduced rates till the end of December.
According to industry players, since the formation of the new government consumer sentiments have improved resulting in better demand.
