The Hindu Business Line : Sales of cars rise 7.83% in Feb, 2-wheelers’ dip 14%

Domestic automobile sales grew at a marginal pace as consumers withheld their purchases owing to the anxiety hovering around the Union Budget and possible repercussions on prices.

Passenger car sales grew by 7.83 per cent according to the month’s data released by the Society of Indian Automobile Manufacturers on Monday, lower compared to the previous months.

Maruti Suzuki sales at 51,762 units, an increase of 2.16 per cent was the lowest as compared to the growth rate that it had been witnessing till December. During the month, sales of Hyundai Motor India dropped 5.44 per cent at 14,591 units. Premium car maker Honda Siel Cars India witnessed a 2.2 per cent dip in sales at 3,432 units.

“There was an anticipation of excise duty cut which led companies hold on to their dispatches so as to pay lower duties. This has been the main reason for most segments growing at a sluggish rate in February. Motorcycles continue to bleed due to poor availability of loan finance, resulting in the decline in sales in 100 cc,” said an auto analyst from B&K Securities India.

CV sales rise

The demand for commercial vehicles at 45,059 per cent, an increase of 1.69 per cent has shown some improvement owing to new launches. The medium and the heavy commercial vehicles segment recovered from the slump by registering a slight increase in sales.

But the light commercial vehicle segment, that had been growing at a healthy pace over the previous months, posted a rise of barely 2.02 per cent.

“The growth rate in the passenger car segment has fallen. Even light commercial vehicles and scooters which have grown at a marginal pace has mainly got to do with budgetary expectations. But improvement in the medium and heavy commercial vehicles segment has been due to introduction of the 31-tonner vehicle launched by Tata Motors, Ashok Leyland and Eicher recently,” said Mr Mahantesh Sabarad, auto analyst with Centrum Broking Pvt Ltd.

2-wheelers hit

The two-wheeler industry continued to remain the worst hit with a negative growth of 14.24 per cent. Restrained by finances, motorcycles sales fell by 17.68 per cent to 4,25,089 units. Hero Honda’s sales declined by 7.5 per cent during the month to 2,47,735 units and Bajaj Auto plunged by 26.50 per cent to 1,07,768 units. The scooters and scooterettes posted flat sales at 83,256 units.

More Stories on : Automobiles | Trends | Cars | Two/Three Wheelers

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