First time in three years, car sales grew in FY15 by 4.99 per cent to 1.87 million units

Although the CII and FICCI officials have voiced their opinion about the interest rate cuts not affecting demand greatly, sources in the auto industry feel that the lending rates will further decrease as RBI may deliver rate cuts to the tune of 50 basis points in 2015-16. This will reduce the cost of ownership by at least 2-3 per cent.

With the opening up of several industries to higher amounts of foreign direct investment (FDI), the auto industry hopes for more foreign investment in its share too. This is sure to enhance auto industry productivity and growth.

Data from SIAM and projections by ACMA also shows a rapid growth of the industry.

Performance of the passenger vehicle segment

Here let's take a look at the March and annual performances of some of the core players in the passenger vehicles segment.

HMCL clocks best-ever sales performance in a financial year

Hero MotoCorp Ltd (HMCL), the world's largest two-wheeler manufacturer, further fortified its leadership position, clocking its best-ever sales performance in a financial year (FY). It clocked a growth rate of 6.63 million unit sales in FY'15, with 6.2per cent growth over FY'14.

Riding on popular demand for its range of two-wheelers, HMCL capped-off the financial year 2015 with robust 5,31,750 unit sales in March'15. The company had sold 5,24,028 units in March 2014. In March, HMC-MM Auto Ltd., the Joint Venture between Hero MotoCorp Ltd. and Milan (Italy)-based Magneti Marelli, also inaugurated their first autonomous ‘Production and Development Centre' at Manesar, Haryana.

Toyota Kirloskar Motor registered a 62 per cent growth

Toyota Kirloskar Motor also registered a 62 per cent growth in March. They clocked double digit growth in sales for the 5th consecutive month, registering a 10 per cent growth this financial year. The company sold 13,333 units in March 2015 in the domestic market as compared to 8,206 units in March 2014.

In total sales too, a similar upward surge was reflected with 14,623 units, including exports, in March 2015. In March 2014, 9,018 units had sold. The company exported 1,290 units of Etios series this month.

N Raja, Director and Senior Vice - President, Sales and Marketing said, "Riding on the new launches we continue to register a double digit growth this month as well. With the launch of the New Corolla Altis, Etios, Etios Liva and Etios Cross in 2014 and New Innova and Fortuner in 2015, we saw an increased acceptance from customers which continue to grow month after month. The Corolla Altis, Innova and Fortuner continue to maintain leadership position in their respective segments. The iconic brand Innova completed a successful journey of ten years last month".

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