KATHMANDU: Indian carmakers reported strong sales growth in May, even as fuel prices increased due to rising global oil costs linked to the Iran conflict.
Market leader Maruti Suzuki recorded a sharp rise in demand for its compressed natural gas (CNG) models. Bookings for CNG vehicles jumped by 40% during the month, as buyers looked for lower running costs amid higher petrol and diesel prices.
Fuel prices in India were raised at least four times in May. The increase came as the government tried to offset losses from expensive crude oil imports. This added pressure on automakers already dealing with higher raw material costs, supply chain disruptions, and labor challenges.
Despite these issues, major manufacturers reported positive domestic sales. Mahindra & Mahindra posted an 11% year-on-year growth. Hyundai Motor India reported a 9.1% increase, while Tata Motors’ passenger vehicle sales surged by 42%.
To manage rising costs, Maruti Suzuki, Mahindra, Tata Motors, and Hyundai have increased vehicle prices starting June. Maruti said it had limited options and had to pass on the cost burden to customers. The company will continue to monitor the impact of the ongoing conflict before making further pricing decisions.
CNG vehicles remained a key growth driver. Maruti Suzuki sold around 78,000 CNG units in May, marking its highest-ever monthly figure. The company also recorded a 34% rise in exports, although shipments to the Middle East slowed.
In contrast, Hyundai Motor India reported a 10.4% decline in exports compared to the same period last year, reports Reuters.
