Indian consumers are known to make big purchases during the festive season that starts from September and make its way to November till Diwali and most of the car makers are expecting for a high sale.
Automakers have sold about 172,459 vehicles in the month of October which is about 23.1 percent higher than the earlier year. This is the first rise auto market has seen in the last three months, according to the data acquired by the Society of Indian Automobile manufacturers.
Sale of motorcycles has also witnessed a step rise with 6.7 percent over the previous year by sale of about 936,122 vehicles. The sale of Trucks and Buses stands at 66,722 vehicles during the month of October in comparison to the 62,013 vehicle last year during the same period.
Director General of the Industry body, Vishnu Mathur said that the data can be exciting but struggle is not over yet. He also said that very low base has also helped in growing sales.
He also added that the data from the next month is quote important as it will clearly indicate if the growth is permanent or is declining down.
SIAM had predicted last month a growth of about 1 to 3 percent for the current fiscal year.
High interest rates and fuel costs have degraded the growth of sales in Indian market, as most of the Indian buyers rely on the loan for purchasing vehicles.
The hike in the diesel prices in the September also has pushed the ownership cost up and had forced most of the automakers to increase their vehicle prices due to increase in the transportation cost. This has also affected the demand.