NEW DELHI (Commodity Online): Domestic car sales in the country seems returning back to its normal state after a decline of 38% in October 201 has grew around 6% year on year in November 2011, according to CRISIL Research.
The car sales improved in November as companies like Tata Motors, Hyundai, Toyota and Mahindra saw an increase in demand. Meanwhile the market leader Maruti Suzuki struggled to meet the rising demand for its diesel models.
Due to the recent hike in interest rates and perol prices had bad affected the cars sales of the country during October.
Maruti Suzuki India Limited (MSIL) (BSE:MARUTI : 532500 NSE: MARUTI) are recovering the production at the Manesar and other plants. The company has been passing through bad times since June 2011.
“With Maruti’s production returning to normal, the revival in car sales growth is likely to be sustained. We expect a 7-9 growth in car sales volumes over the remainder of the fiscal, and thus maintain our forecast for 2011-12 at 0-3 per cent.”said Sridhar Chandrasekhar, Head, CRISIL Research.
Meanwhile, the companies expect the down trend to continues in the coming months due to the slowing global economy.
Recently, the car manufacturers had raised the price of the models due to the costlier imports of spare parts due to depreciation of rupee against the dollar.This is also said to affect the market sentiments.
On BSe, Maruti suzuki traded up 3.10% to Rs 991.85 on Saturday at 11:05 IST
