Car Sales Zoom 22% In February
Sign in

Car sales zoom 22% in February

Business Man

Car sales registered a 22% growth at 1.15 lakh units against 94,757 units in February last year. According to data released by the Society of Indian Automobile Manufacturers (SIAM), total sales of auto industry— including cars, two-and-threewheelers and commercial vehicles— grew 13% in February at 8.3 lakh units against 7.4 lakh units in the same month last year. Increased demand for small cars and sedans under Rs 10 lakh saw companies like Maruti, Honda, Hyundai and Tata witnessing healthy growth. In the two-wheeler industry, both scooters and motorcycles witnessed surge in demand. Scooter sales in February were up 21% at 100,789 units against 83,256 units in the same month last year, the bulk of the volumes coming from Honda Motorcycle and Scooter India (HMSI). For motorcycles, the growth was 16% at 4.9 lakh units against 4.2 lakh units last year. While Hero Honda led the charge here, its rival Bajaj continued its poor show, with another month of degrowth. Total two-wheeler sales in February were up 16% at 6.3 lakh units against 5.4 lakh units in the same month last year, Siam said. While many see these numbers as a gradual revival in car and two-wheeler demand, a section of analysts feels that it is early to talk of a turnaround. “The February sales growth rate is healthy this time as the base month (February’08) had lower sales because people postponed purchases on hopes of a duty cuts in the budget. Since there was not a regular Budget this year and no duty cuts were expected, people continued with purchase plans, thus giving a temporary revival in demand,’’ an analyst said. However, despite efforts by the government to revive demand, sales of commercial vehicles in Feb were down 32% at 31,069 units against 45,478 units in the same month last year. Top three players— Tata Motors, Ashok Leyland and Eicher— faced slump in sales. On the three-wheeler side, sales were up 5% at 29,989 units from 28,544 units in the same month last year. Ford India said its sales grew by 8% to 2,636 units in February 2009 over the same month last year. However, on month-to-month basis, the sales jumped by 35% in February.
start_blog_img