Contrary to preliminary forecasts, widespread monsoon rains across India during June have brought cheer to the domestic auto industry with segments showing upticks in sales in rural markets, industry officials said on Tuesday, June 30.
The officials said that favorable and evenly distributed rains across the country during the first month of the monsoon season improved sentiments in rural markets and will help consolidate the 7.7 percent growth in passenger car sales during May and revive demand for commercial vehicles in rural markets.
Although aggregated sales figures during June are yet to be released by the Society for Indian Automobile Manufacturers (SIAM), information from industry sources indicated that, since the monsoon rains gathered pace early this month, agricultural tractor manufacturers like Escorts have notched a 14 percent increase in sales while Mahindra & Mahindra recorded a sales hike of eight percent.
Officials said that the largest Indian passenger car manufacturer by sales, Maruti, which increased sales by 13 percent during May, is also expected to consolidate its growth in the current month since one third of its sales are accounted by rural and semi-rural markets, where rains have brought optimism for better crop sowing and hopes of higher farm incomes.