Auto industry's growth trend continues

Showing signs of continued recovery, the country's automobile industry on Tuesday reported an 8.09 per cent rise in its overall vehicle sales in May, 2008.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the domestic passenger car sales registered a growth of 14.26 per cent, while total two-wheeler sales were up by seven per cent in May this year.

The passenger car segment clocked sales of 1,10,743 units during the month, against 96,923 units in the same month a year ago, SIAM said.

Total domestic vehicles sales stood at 8,52,872 units, against 7,89,041 units in the same month last year.

Segment leader Maruti Suzuki India's sales grew by 16.13 per cent to 57,315 units, against 49,354 units in the same month in 2007.

Rival Hyundai Motors sold 24,506 units during the month, against 16,617 units last year, up 47.48 per cent.

Tata Motors, however, recorded a flat growth at 14,228 units, against 14,217 units in the same month previous year.

General Motors India had a 6.12 per cent jump in its sales at 3,847 units, compared to 3,625 units last year.

Industry experts opined that the overall automobile industry would continue to grow this year despite high interest rates, and finance availability continuing to be a major issue.

"Changing from negative to positive is great thing. We will see growth throughout the year and expect to touch the figures of 2006," SIAM Director General Dilip Chenoy said.

In the car segment, the industry has been witnessing steady growth in the last two years, he added.