Indian auto makers show strong sales in January

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MUMBAI: Indian vehicle sales rose in January due to robust demand, company data showed yesterday, pointing to a strengthening economy that international carmakers are pushing to access.

ROBUST DEMAND: In a file picture taken on Jan 10, 2009 shows  the first export shipment of Maruti Suzuki’s World Strategic Model A-Star bound for Europe stands parked on the dock at Mundra, 450km from Ahmedabad. —AFP photo

ROBUST DEMAND: In a file picture taken on Jan 10, 2009 shows the first export shipment of Maruti Suzuki’s World Strategic Model A-Star bound for Europe stands parked on the dock at Mundra, 450km from Ahmedabad. —AFP photo

Japanese-controlled Maruti Suzuki India and South Korea’s Hyundai Motor announced higher sales of cars.

Maruti Suzuki India, the country’s top passenger car maker, said sales rose 33.3 per cent to a record 95,649 vehicles in January, from a year earlier, aided by strong domestic and overseas sales.

“This is the highest-ever number of cars sold in a month,” a spokesman for Maruti Suzuki said, beating a previous record of 87,809 vehicles sold in November 2009.

Its passenger car sales rose 21.2 per cent to 80,952 units.

Maruti sold 14,562 cars overseas, a three-fold jump in demand over last year, a statement to the Mumbai stock exchange on Monday showed.

Hyundai Motor India announced monthly sales of 52,635 vehicles in January, up 41.6 percent from a year earlier.

“We expect the momentum to continue with the help of the stimulus packages from the government,” said Arvind Saxena, director with Hyundai Motors India.

Hyundai’s domestic sales rose to a 12-year high of 29,601, data showed.

Last week, India’s central bank, the Reserve Bank of India, in its policy review, kept interest rates on hold but drained excess liquidity from the banking system to try to tame inflation without hurting economic recovery.

Analysts predict the central bank will only gradually tighten monetary policy in 2010 especially as growth is expected to be constrained by the planned withdrawal of government fiscal stimulus measures.

“An overall recovery for the economy is aiding this sector,” said Vaishali Jajoo, an auto analyst with local brokerage Angel Broking.

“Benign interest rates are also aiding demand,” she told AFP.

Auto stocks were up at the Mumbai stock exchange, reacting to the data.

Maruti rose 0.43 per cent to 1,396.1 while Mahindra and Mahindra rose 1.31 per cent to 1,032.8.

Tata Motors, the country’s largest vehicle maker, rose 0.38 per cent to 697 rupees, ahead of its monthly sales data expected later in the day. —AFP