We all have been hit by the steep rise in the prices of the petrol and diesel as a result whole Auto industry is expecting a dip in the sales of the automobiles across the nation. This happened in US market, but surprisingly Indian automobile industry registered a growth rate of around 8 to 10 percent. Most of the US Auto leaders showed downfall in their sales. For example, Toyota Motors reported 21 % drop in U.S. sales in June. It was the biggest year-over-year decline in Toyota’s U.S. sales for the last 10 years. On the other hand, Ford Motor posted a 28 % decline in sales. In a report form Autodata (Europe’s leading publisher and supplier of technical information for automotive professionals through printed and electronic media.), which says:

“The initial reading of industry wide auto sales showed sales tumbled to a seasonally adjusted annual rate of 13.6 million vehicles in the month, down from the 14.3 million pace in May, which was also considered a weak month for sales, and 2 million cars and light trucks below the year-ago pace. It was also the weakest sales pace in 15 years.”

Whereas our Indian counterparts registered growth in the same period. Hero Honda has reported a 16 % increase in its motorcycles sales in June 2008. In the same period Bajaj reported a growth of 8 %. Maruti Suzuki India Limited sold 61,247 vehicles in June 2008. These include 4836 vehicles for the export markets. The company had sold a total of 59,917 vehicles in June 2007. Compared to the sales in June 2007, Maruti’s volume in the domestic A2 segment is up by 0.3 per cent while the A3 segment grew by 48 per cent over the period of last one year.

This growth is really a good sign for the manufacturing sector of Indian industry. We need to have words of appreciation for the entire Indian auto industry for their splendid performance in recent years. I think this will definitely boost India’s economy in the state of economic recession and prise rise..