New Delhi: Renault SA’s sevenfold surge in vehicle sales fueled growth in India’s auto market in July, extending the industry’s streak of gains to 13th consecutive months.
Demand for the Kwid minicar, built with an SUV-like stance, paced Renault’s increase to 11,968 deliveries last month. Industrywide passenger vehicle sales rose 17% in July, the biggest gain since October 2015, Society of Indian Automobile Manufacturers (SIAM) said on Wednesday in New Delhi.
Monsoon rains boosting farm output and falling fuel prices are lifting consumer sentiment, according to Rakesh Srivastava, senior vice president for sales and marketing at Hyundai Motor Co.’s local unit. State-owned refiners have been cutting gasoline and diesel prices, and rainfall in the June-to-September monsoon season has been above normal, benefiting a country where about 30% of passenger vehicles are sold in rural areas.
Also Read: SUVs, compact cars prop up auto sales
Domestic sales of Maruti Suzuki India Ltd. increased 14%, with deliveries of sport utility vehicles (SUVs) including the compact Vitara Brezza more than doubling. The country’s biggest automaker by volume raised prices this month of some models, including the Vitara Brezza and Baleno hatchback, citing demand and currency swings.
Hyundai, which posted a 13% jump in India sales last month, also said it will increase prices starting 16 August. Mahindra & Mahindra Ltd. reported a 20% jump in deliveries. Bloomberg