India’s car industry back to faster lane

Car sales grew for a fourth straight month in August in what analysts say heralds a brisk religious holiday season

After two years of shrinking Indian sales, automakers are moving back into the fast lane as the economy picks up, although analysts say itmay be a fewyears before the industry goes full throttle again.

Car sales grew for a fourth straight month in August in what analysts say heralds a brisk religious holiday season — the two- month period ahead is seen as an auspicious time to buy.

All this adds up to a cheerier backdrop for the annual conference of the Society of Indian Automobile Manufacturers ( SIAM) in New Delhi today.

Automakers have lined up a slew of launches to drive demand and nudge consumers off motorcycles into low- cost cars while getting existing owners to upgrade to larger sedans and SUVs.

Until the 1990s there were just a few models on sale in India. Among them were the bulky Ambassador modelled on Britain’s 1950s- era Morris Oxford — which has just halted production, to the dismay of retro- auto buffs — and the zippier, boxlike Maruti 800.

Pent- up demand

Car sales of Japanese- controlled market leader Maruti Suzuki leapt 27 per cent yearonyear in August. South Korea’s Hyundai, Maruti’s nearest rival in the Indian market, reported a 19 per cent increase. But Japanese carmaker Honda was the star in percentage growth terms, with sales climbing 88 per cent.

“The festive season has already set in and will bring further cheer,” Honda senior vice president Jnaneswar Sen said.

India has just 15 cars per 1,000 people, according to industry figures — among the lowest rates in theworld.