The sales of motor vehicles especially cars have suddenly grown upwards to 21.8 percent in October. It is the 12th consecutive month of growth as robust festive season purchases brought much hype to the auto industry. The people are showing much interest in buying cars due to many reasons. According to the report of Society of Indian Automobile Manufacturers (SIAM), the sales of domestic cars are noted as 1,94,158 units. Whereas in the same month of 2014, the sales are 1,59,408 units.

Coming to the passenger vehicle sales, it has grown by 21.46 percent from 2,21,163 units last year to 2,68,629 units this year. “Festival season has brought in cheer to the auto industry as sales have risen across categories during the last month,” SIAM Director General Vishnu Mathur told. The other motor vehicles like passenger cars, motorcycles, scooters and commercial vehicles posted good growth during the month.

Talking about the overall festive season sales, SIAM Director General said: “There is still some data to come for the last month but taking into account the figures so far, this festival season is going to be much better than the corresponding one.” According to the reports, the largest Automobile Company in India Maruti Suzuki posted its growth as 21.54 percent in domestic car sales from 80,589 to 97,951 units.

Due to the new products like Ertiga and S-Cross, the sales of passenger vehicles grew by 24.72 percent at 1,21,063 units. Whereas Hyundai Motor India posted its car sales increased by 4.78 percent which is very less. But in the sales of passenger vehicles, it increased 23.69 percent due to its SUV Creta. TATA motors domestic car sales increased by 15.16 percent from 9,594 to 11,049 units. TUV300 from Mahindra & Mahindra increased the sales by 19.10 percent from 19,029 to 22,664 units.

According to the SIAM data, motorcycle sales rose 5.66 percent to 10,65,856 units in October as against 10,08,761 units sold during the same month last year. “Motorcycle sales are heavily dependent on rural markets. Though sales have increased but we would like to see if it is sustained in the next few months,” Mathur said. “We see demand for the light commercial vehicles coming back. We expect commercial vehicle segment to scale peak level by the first half of next year,” Mathur said.

CV segment had posted peak sales in March 2012 when over 90,000 units were retailed by various automakers. Commenting on the sales data, Abdul Majeed, Partner, Price Waterhouse, said: “The numbers across segments are encouraging. OEM’s are playing their part in bringing the customers to showrooms with new launches as well as aggressive pricing including discounts.”