The month of July flourished with hike of 6.71% in auto sales as the market experienced a good demand for diesel cars. The rise is counted in contrast to last year’s low sales volume due to a month long work halt at Maruti Suzuki’s plant at Manesar.

In July 2012, domestic car sales progressed with total business of 1,43,496 units as against to 1,34,473 units sold in the same month last year, as per figures revealed by the Society of Indian Automobile Manufacturers (SIAM).

The Director General of SIAM, Vishnu Mathur addressed reporters and said, “Indian auto sales are commendably booming just because of increase in demand of diesel cars. The segment did confront halt recently except two-three diesel models, which were selling like hot favorites.”

Even yearly sales started on a slow note because the largest carmaker witnessed prolonged labor unrest at its Manesar unit in June last year, which resulted in huge production loss. Now again this year, the automaker is in trouble due to violent clash at the same plant that led to loss of one life with more than hundred injuries. Currently the assembly is locked out, impacting production and profits.

Mr. Mathur also commented, “In last month the market did not see any positivity apart from a slight slash in petrol prices. And now along with high interest rates, even customer sentiments are low. The industry is hoping a lot from the new finance minister and wants him to take up steps for controlling interest rates plus lessening the rising price difference between diesel and petrol.”

According to sales volume in the passenger car segment, Maruti Suzuki posted 8.32% sales hike at 56,851 units. On the other hand second largest carmaker Hyundai recorded 7.84% growth with sale of 27,500 units. The Indian auto major Tata Motors sold total 21,153 units in July, registering an increment of 51.13%. In the same month of July, total car sales across all the categories taped a hike of 7.53% to 14,46,959 units from last year’s same month count of 13,45,644 units.

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