Indian Auto sector saw better sales in December Lower 2012 outlook

Last month of the current year proved to be a better month for the Indian automobile companies with sales volume increasing for most of the Indian Auto makers. Mahindra and Mahindra-s sales jumped by 26% in December compared to same month last year. Tata Motors- total sales jumped by 22% to 82,278 units in December compared to same month last year due to rebound in the car sales and different discounts. The cumulative sales for the fiscal were increased by nearly 11% to 626,770 units which is a strong sales volume. At the same time, India's largest car maker Maruti Suzuki sales dropped by 7.1% to 92,161 units in December compared to last year same month. This is the consecutive drop for seventh months in a row due to workers- unrest at its biggest plant at Maneshar.

Two-wheeler segment witnessed a drop in sales volume for the month of December compared to previous month. Bajaj Auto-s sales dropped by 18% in December compared to November but was increased by 10% from the same month last year. Biggest player in the two-wheeler segment, Hero Moto Corp witnessed a smart 7.8% jump in sales in December compared to previous month. Third major player, TVS Motor-s sales volume dropped in the same month.

Overall December was a better month for Indian Auto sector compared to previous couple of months. Indian auto sectors are now struggling with high interest rate and high fuel costs. Due to the same reason, all the companies are very much cautious for 2012 and lowered their sales growth projection.