New Delhi: Passenger vehicle deliveries in India expanded at their fastest pace in five years as new model introductions by Suzuki Motor Corp., Hyundai Motor Co. and Renault SA offset a ban on the sale of large diesel vehicles in the nation’s capital.
Deliveries of cars, sport utility vehicles and vans in the year through March climbed 7.2 per cent to 2.79 million units, the Society of Indian Automobile Manufacturers said Friday. Sales climbed 3.9 per cent in the year-earlier period.
Growth was primarily driven by new hatchback and SUV models. Suzuki’s local subsidiary maintained its market-leading position as it introduced the Baleno hatchback and offered automatic transmission options for some models. Hyundai lured buyers with its Elite i20 compact hatchback and Creta SUV, while Renault attracted minibar shoppers with its Kwid.
While the Society of Indian Automobile Manufacturers has said sales of passenger vehicles in the current fiscal year will grow at a faster pace, the group reduced its forecast last month after the government imposed levies on cars, vans and SUVs. The manufacturers cut their projection to as much as 11 per cent growth, from as much as 12 per cent.
The group in February said consumers in rural India, who buy about 35 per cent of passenger vehicles sold in the country, will increase purchases as long as the nation’s monsoon season lifts incomes. More than half of farmlands in India depend on rain-fed irrigation.
India’s top court in December imposed a ban in New Delhi on registrations of diesel vehicles with engine capacity of 2 litres or more. The prohibition has impacted sales for automakers including Toyota Motor Corp. and prompted the introduction of models with gasoline options or smaller diesel engines. Toyota’s deliveries dropped 41 per cent in March.
Deliveries of passenger vehicles in March increased 5.1 per cent to 256,942 units.
