Car sales in February continued the year's encouraging start it got in January, with most carmakers returning to healthy growth rates.
While a fear of higher taxes after the Budget this month was one factor pushing up sales, the growth was also attributed to improved customer sentiment after the recent pause in interest rate hikes. Exports, however, were down for most players, largely due to the slowdown in Europe.
“The month seems to have been good, but we need an overall 10-12 per cent growth in car sales across the industry for an overall positive turnout to a depressed 2011-12 fiscal,” Mr Vishnu Mathur, Director-General, Society of Indian Automobile Manufacturers, said.
On a six per cent rise, Maruti Suzuki posted its second consecutive month of growth after watching sales dip for over half a year. A blessing in disguise was the diesel engine deal with Fiat signed this January that helped the market leader increase supply of its popular Swift and Dzire models.
“The fourth quarter is usually always the best, but the expectation is now that the interest rates will come down,” a top Maruti official said. “Dzire and Swift sales were the highest-ever on the 8,000 diesel engines from Fiat adding to our own 25,000 units capacity – but they (the models) still have waiting period of 4-6 months.”
New launches help
Hyundai saw its highest-ever domestic sales in the month with a 13 per cent rise on the back of the new Eon compact and Verna sedan. Tata Motors' sales were up nine per cent, with the Nano selling 9,217 units (12 per cent rise) – just shy of its all-time monthly high of 10,012 units (April, 2011).
Utility vehicle major Mahindra & Mahindra saw sales jump 33 per cent, while Toyota Kirloskar sales went up a strong 79 per cent on high demand for the Etios range as well as the revamped Fortuner and Innova.
Honda Siel, which resumed full operations at its plant after months of production issues, saw an 83 per cent rise (8,856 units), while Nissan sold 5,371 units in the month.
However, American carmakers Ford and General Motors both posted a 13 per cent (8,035 units) and a four per cent (8,901 units) sales decline in the month, respectively. Volkswagen's sales also dropped eight per cent (6,527 units).
Two Wheelers
Hero MotoCorp continued to sell five lakh plus units in the month with an 11 per cent growth over last year, while erstwhile partner Honda Motorcycles saw sales rise 41 per cent.
TVS Motor saw sales dip three per cent (1.72 lakh units), while Yamaha and Suzuki Motorcycle each posted a 23 per cent (27,050 units) and 30 per cent (37,336 units) rise.