Auto sales enter slow lane in May, expected to bounce back in the festive season
dispatches from the manufacturers to the dealers over the year-ago period, said executives at manufacturers that released the monthly sales figures on Saturday.
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Automobile manufacturers in India count dispatches to dealers as sales.
The overall sales volume during the month is estimated to have increased 4,4% to 350,257 units from 335,446 a year ago, Partho Banerjee, senior executive officer, sales and marketing, at car market leader Maruti Suzuki India, told media persons at the monthly sales call.
The numbers represent slower growth than in May 2023, when the sales volume went up 13.8% year-on-year.
It comes on the back of a high-paced growth seen in the past three years.
“This is in line with the expectations. We see the traction coming back after the poll results,” Banerjee said, adding that the forecast of a good monsoon and the end of uncertainty after the poll results would help sales bounce back.
India’s GDP is estimated to have grown 8.2% in 2023-24, led by a 9.9% growth in the manufacturing sector.
“The auto industry and Maruti have contributed and seem to have benefited from and contributed to the GDP,” said Rahul Bharti, executive director, corporate affairs at Maruti Suzuki India.
In May, Maruti Suzuki India’s domestic sales increased marginally to 144,002 units from 143,708 units a year ago. Dragged down by a consistent fall in the mini and compact car sales, the company’s overall passenger car sales fell to 78,838 units from
