Traffic in India
Traffic in IndiaReuters

Major car makers have recorded a surge in auto sales in August 2014 ahead of the festive season. Additionally, experts believe that recent decline in international rubber prices is also a factor that might boost the Indian automobile industry.

According to a report by Automotive Component Manufacturers Association (ACMA), Indian auto sector is expected to record up to six percent growth in the current fiscal year, after having recorded a loss of two percent in 2013-14, reported Business Standard.

But, Price Waterhouse auto expert and partner, Abdul Majeed has predicted eight to 12 percent growth in passenger car sales during the current fiscal year. "Considering the pent-up demand and an overall positive outlook, car segment can log up to 12% growth this fiscal on the back of overall stronger economic outlook and higher customer confidence," Economic Times quoted Majeed.

Passenger Vehicle
Company August 2014(Vehicles sold) August 2013(Vehicles Sold) % Change
Maruti 98,304 76,018 29
Hyundai 33,750 28,311 19
Honda 16,758 8,913 88
Mahindra 14,140 15,821 -11
Toyota 11,215 12,007 -7
Tata Motors 10,975 11,564 -5
Ford 6,801 8,008 -15
General Motors 4,232 6,673 -37
Nissan 3,999 2,494 60
Two Wheelers (August 2014)
Company August 2014(Vehicles sold) % change
Hero Moto Corp 5,58,609 21.43
TVS Motor 1,90,547 50
Honda Motorcycle 3,88,210 25.68
Royal Enfield 26,121 66

Source: The Hindu

As sales of Mahindra dropped, the company's Chief Executive for the automotive division and international operations, Pravin Shah said that the company will continue to be optimistic following auto sector's enhanced business confidence that is reflected by the manufacturing sector displaying signs of revival.

However, last week the Competition Commission of India (CCI) fined 14 carmakers for engaging in anti-competitive practices with a total penalty of over ₹2,500 crore ($420 million).

These car makers disclosed the availability of spare parts and accessories, which led to surge in the price of auto-components, impacting 2 crore customers. According to reports, CCI fines have proven to be non-threatening in previous cases.