Car sales in India hit a record monthly high of 1.89 lakh units in February as customers advanced purchases in anticipation the government may hike excise duty in the Budget. Sales were also driven by rising disposable income with the middle-class , easy availability of loans, and a pick up in new product launches.
Car sales rose by 23% in February compared with a year earlier, data released by industry body Society of Indian Automobile Manufacturers (SIAM) showed Wednesday. The February sales number is higher than the record 1.84 lakh cars sold in January.
The Budget for 2011-12 , however, left excise duty unchanged at 10-22 % for different segments of cars, contrary to an expectation of a 2% hike. "Car prices have not increased much despite rise in global commodities prices like steel and rubber . Also, customers are enjoying flexible financing options. In future , however, we expect higher base of 2010 to moderate growth rate," SIAM Director General Vishnu Mathur said. Maruti Suzuki, the country's largest carmaker, reported 19.8% year-on-year growth in sales in February to 101,543 units.
"There was more demand in the market than what we could supply as we faced severe scarcity for our highrunning models like Alto and WagonR," a senior official from Maruti said. Hyundai sales grew 5.3%, while Tata Motors car sales grew 14% during the month. Two-wheeler sales in February grew 22% to a record 10.22 lakh units. The growth in the segment was primarily driven by market leader Hero Honda that posted 24% increase in sales to 4.62 lakh units last month. Sales of trucks and buses grew 11% in February to 64,057 units led by Tata Motors, Ashok Leyland , and Eicher Motors.
India's total domestic vehicle sales in the current fiscal year is expected to grow 26-27 % year-onyear , higher than SIAM's earlier estimate of 18%, said Mathur. However, rising interest rates on auto loans and spiraling global commodities prices, including crude oil, are concerns for the sector going forward.
Car sales rose by 23% in February compared with a year earlier, data released by industry body Society of Indian Automobile Manufacturers (SIAM) showed Wednesday. The February sales number is higher than the record 1.84 lakh cars sold in January.
The Budget for 2011-12 , however, left excise duty unchanged at 10-22 % for different segments of cars, contrary to an expectation of a 2% hike. "Car prices have not increased much despite rise in global commodities prices like steel and rubber . Also, customers are enjoying flexible financing options. In future , however, we expect higher base of 2010 to moderate growth rate," SIAM Director General Vishnu Mathur said. Maruti Suzuki, the country's largest carmaker, reported 19.8% year-on-year growth in sales in February to 101,543 units.
"There was more demand in the market than what we could supply as we faced severe scarcity for our highrunning models like Alto and WagonR," a senior official from Maruti said. Hyundai sales grew 5.3%, while Tata Motors car sales grew 14% during the month. Two-wheeler sales in February grew 22% to a record 10.22 lakh units. The growth in the segment was primarily driven by market leader Hero Honda that posted 24% increase in sales to 4.62 lakh units last month. Sales of trucks and buses grew 11% in February to 64,057 units led by Tata Motors, Ashok Leyland , and Eicher Motors.
India's total domestic vehicle sales in the current fiscal year is expected to grow 26-27 % year-onyear , higher than SIAM's earlier estimate of 18%, said Mathur. However, rising interest rates on auto loans and spiraling global commodities prices, including crude oil, are concerns for the sector going forward.
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