Maruti bucks auto trend sales spur

Maruti bucks auto trend as it records tremendous sales figure in India last month. The easier credit led Maruti to record sales in India, its biggest market. However, the sales in Suzuki’s home market of Japan and in the U.S. is going downward, where the global recession drove auto sales in January to the lowest level since 1981.

“Things are going much better as the worst sales we faced in the month of November and December won’t be repeated,” said Jayesh Shroff, who helps to manage $1.5 billion in equities at SBI Asset Management Co. in Mumbai.

Maruti Suzuki India Ltd., sold 71,779 vehicles in January 2009, that was highest since it began selling cars 25 years ago. While in the month of December it sold 56,293 units and in November it sold 52,711 units. Suzuki’s shares rose by 4% to 1,419 yen in Tokyo after gaining as much as 7% earlier. While in India Maruti Suzuki gained around 1.7% to 586.7 rupees in Mumbai stock trading.

The largest automaker, Toyota and its Japanese competitors including Honda Motor Co. and Mitsubishi Motors Corp. have slashed production and reduced its workforce as auto demand weakens worldwide. Toyota slashed 30% of its production in India until February. Hyundai Motor Co., largest auto manufacturer of Korea, said that it will cut its temporary staff in India and it may reduce production this year.

The Indian government is also trying much to spur auto industry with an economic stimulus plan that includes $4 billion of spending to build new roads and ports. The Indian government recently reduced fuel prices in January for the second time in less than two months, that might help to boost auto demand.