Auto sales continue on fast lane in Feb too

Auto sales continue on fast lane in Feb too
Almost every segment reports highest monthly sales.
New Delhi, Mar. 8

The domestic auto industry posted, in February this year, the highest-ever overall unit sales in a single month, surpassing a similar record set in just the previous month of January.

Individually, nearly every segment except commercial vehicles (CVs) and goods three wheelers have recorded the highest ever monthly sales.

Besides a return of confidence in the market, which has underlined the steady sales growth of the last few months, the main reason for February's good show is the early purchases by customers due to expectations of a price hike post-Budget. Other reasons like availability of cheap finance also helped.

Price rise on cards

Incidentally, auto sales are expected to remain strong through March with pre-buying due to another price hike expected in April. Manufacturers are expected to raise prices to offset the cost of engine upgradation for meeting the new emission norms that come into force from April onwards. While 13 cities will move to Bharat Stage (BS) IV norms, the rest of the country will shift to BS III norms.

According to data by the Society of Indian Automobile Manufacturers (SIAM), the passenger car segment has posted a 33 per cent growth in domestic sales at 1,53,845 units in February 2010, over the same month last year.

Overall Sales

Meanwhile, overall sales across the industry grew 35 per cent. Besides setting a similar record last month, the last such record of highest ever monthly overall sales was achieved more than three years back in October 2006.

“The good growth in sales is because of advancing of purchases by buyers due to expectations of a price hike after the Budget. Also, there is now confidence in the growth of the Indian economy. However, CVs and goods three wheelers have not performed at par with the other segments. Every segment, except these two, have seen the highest-ever monthly sales,” Mr Dilip Chenoy, Director General, SIAM told Business Line.

However, he warned that a contraction of money supply post the Reserve Bank of India's policy review in April, may lead to an interest rate hike and slow down the growth in the industry.

Segment Growth

Individually, the umbrella passenger vehicle segment posted a 34 per cent growth in February, while the CV segment grew 87 per cent. The two wheeler and three wheeler segments rose 33 and 32 per cent, respectively.

Among major carmakers, Maruti Suzuki, Hyundai Motor and General Motors individually announced their best ever sales in February. Market leader Maruti Suzuki's sales increased 18.20 per cent as Hyundai Motor India posted a 46.14 per cent growth in the month. Meanwhile, Tata Motors' sales rose 48.03 per cent.

Motorcycle sales rose 30.72 per cent to 6,42,419 units in February. Market leader Hero Honda's sales were up 13.91 per cent, while Bajaj Auto's sales zoomed 94.23 per cent in the month. Meanwhile, TVS Motor Company and Honda Motorcycle & Scooter India (HMSI) posted a growth of 34.70 per cent and 23.87 per cent respectively.

Scooter sales jumped 44.72 per cent as market leader HMSI's sales rose 19.96 per cent. TVS Motor's scooter sales were up by 37.89 per cent in the same period.

In CVs, sales of light commercial vehicles were particularly strong with a growth of 65.72 per cent.


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