According to Society of Indian Automobile Manufacturers, total sales for all categories stood at 12,08,851 units as against 9,29,917 units for the corresponding period a year-ago, a growth of 30%
The Indian auto industry sold 12,08,851 units last month, a record sale for the month of May, fuelled by an improved economy and an increase in consumer spending, reports PTI.
According to Society of Indian Automobile Manufacturers (SIAM), the total sales for all categories stood at 12,08,851 units as against 9,29,917 units for the corresponding period an year-ago. The 30% rise in sales is in contrast to the usual trend of lower volumes in May.
"Last month's figures were the best ever sales for the month of May in almost all categories... Our economy is growing very rapidly. The per capita income has almost touched $1,000 and that's a magical figure, which is the threshold for automobile demand," SIAM director general Vishnu Mathur told reporters in New Delhi.
Besides, other factors like stable interest rates and easy availability of finance have also spurred the sales. SIAM puts domestic car sales of previous month at 1,48,481 units, against 1,13,810 units sold in May last year. This makes for an increase of 30.46%.
Car market leader Maruti Suzuki sold 76,120 units in May, a figure higher by 21.06% while rival Hyundai Motor India's sales grew by 15.53%. Similarly, Tata Motors' sales also jumped to 18,618 units, which was 45.02% higher than last year.
However, SIAM director general cautioned that sales may be affected if the monsoon, which the Met department has predicted to be good this year, becomes weak. Rising inflation is another concern.
"If the government takes steps to control the money supply, then at some point of time interest rates will be under pressure. We have to track it very carefully," Mr Mathur said.
Sales of two-wheelers in May also jumped by 28.66% over that of May 2009. Motorcycle sales in India during May went up by 25.80% to 7,25,311 units from 5,76,537 units in the year-ago period.
The country's largest motorcycle maker Hero Honda registered a growth of 11.74% in its sales at 4,01,320 units in May 2010.
Sales in rival Bajaj Auto also shot up by 68.73% to 1,91,726 units, while Chennai-based TVS Motor Company posted a 21.21% growth at 52,319 units in May. Honda Motorcycle & Scooter India (HMSI) saw its bike sales jump by 52.24% to 55,110 units.
In the scooter segment, the total sales in May jumped by 45.45% to 1,57,509 units as against 1,08,291 units sold in the corresponding month last year, SIAM said.
HMSI's scooter sales were up by 28.03% at 76,980 units, while TVS Motor's scooter sales grew by 40.19% in May to 30,567 units. Hero Honda's scooter sales jumped 23,738 units, an increase by 61.21% from last year.
SIAM figures show the commercial vehicles segment carried forward the upward trend that began in July 2009, with sales in the last month growing by 57.71% to 48,580 units against 30,803 units in the corresponding period last year. This was the most successful period for the segment.
"Expecting a good monsoon this year, there were good freight movements witnessed across the country. This has propelled the commercial vehicles sales," Mr Mathur said.
Light commercial vehicle sales rose by 37.94% in May to 25,688 units from 18,622 units. Medium and heavy commercial vehicle sales surged by 87.93% to 22,892 units compared to 12,181 units in the same month last year.
Three-wheeler sales were also up by 10.34% at 33,141 units compared to 30,036 units.
According to ICICI Securities' managing director and CEO Madhabi Puri-Buch, nearly $20 billion will be raised from IPOs during the current fiscal
Indian companies are expected to raise up to Rs2 lakh crore from the primary market over the next three years, the country's top brokerage and investment banking firm ICICI Securities said today, reports PTI.
"Over the next three years, we will see a lot of companies coming out...there will be additional papers in the market, Rs1.5-Rs2 lakh crore in the next three years," ICICI Securities' managing director and CEO Madhabi Puri-Buch said in New Delhi on the sidelines of a CII event.
According to Ms Buch, nearly $20 billion will be raised from the initial public offer (IPO) market this fiscal only.
We expect that Indian companies will "raise around $20 billion from the IPO market this fiscal," she said, adding that of this around Rs40,000 crore would be from public sector and an equal amount from private companies.
She further said that many firms, especially small ones, may prefer the private equity (PE) route for raising funds.
"Smaller companies will prefer private equity. Liquidity is available in the market for Indian corporates."
When asked whether the new public holding rule will dampen the primary market, Ms Buch said "I would not say it would prove a dampener for the IPO market."
Last week, the government made it mandatory that all the listed firms should ensure a minimum 25% public holding. Analysts said following the new norm, public offers would swarm the market.
Ms Buch added that under the new rule "companies may prefer to go for private equity investors in the initial stage".
The disinvestment process is expected to begin after the nod from the finance ministry is received
The government today said that it would list 35 public sector companies on stock markets over the next five years. The move would generate about Rs1.5 lakh crore in revenues for the Centre, reports PTI.
"In the next five years, we will list 35 PSUs....the government will get almost Rs1.5 lakh crore as revenue from this listing," minister of state for heavy industry and public sector enterprises Arun Yadav told reporters here at a CII function.
He said that the ministry is waiting for the finance ministry's approval. "Once we get the nod from the finance ministry, we will start the process," Mr Yadav added.
Last week, disinvestment secretary Sumit Bose had said that Engineers India disinvestment is likely to take place by the middle of July.
Besides, the government is likely to sell stake in 10 PSUs, including MMTC, Coal India, SAIL, RINL and Shipping Corporation of India, in the current financial year. The Cabinet's nod for SAIL disinvestment has already been received.
During the last fiscal, the government raked in Rs25,000 crore from stake sale in Oil India, NMDC, REC and NTPC.