Delhi/Chennai: High interest rates and rising fuel
prices resulted in lower sales for India's auto industry in
Passenger car major Maruti Suzuki logged 7.9 percent lower sales
in February as compared to the corresponding month of 2012. The
company sold 109,567 units last month from 118,949 units in
The domestic sales of the passenger car major fell by nine percent
at 97,955 units from an offtake of 107,653 units.
However, exports grew by 2.8 percent at 11,612 units from 11,296
units shipped out in February, 2012.
Chennai-based automobile major Hyundai Motor reported a domestic
sales of 34,002 units, down 7.6 percent from 36,805 units.
However, Hyundai's exports increased by 37.2 percent which stood
at 20,663 units from 15,050 units shipped out during the
corresponding month of last year.
The total sales grew by 5.4 percent at 54,665 units from 51,855
units sold in February, 2012.
"The market was suppressed as there was drop in enquiries with
lower rates of conversions to purchase. The increase in fuel
prices negatively impacted the already low market sentiments,"
Rakesh Srivastava, vice president, sales and marketing,t Hyundai
Motor India said in a statement.
However, leading sports utility vehicle (SUV) manufacturer
Mahindra and Mahindra reported a healthy 11 percent sales growth
with 47,824 units.
Sales were 43,087 units in the corresponding period last year.
According to the company, domestic sales increased by 10 percent
and stood at 44,399 units from 40,461 units.
Exports rose by 30 percent at 3,425 units from 2,626 units shipped
out in the corresponding month last year.
The company voiced its disappointment with Finance Minister
P.Chidambaram's budget proposal to raise excise duty on SUVs from
27 to 30 percent. However, SUVs registered as taxis are exempted
from the duty.
"Levying a three percent higher duty on SUVs on the basis of
higher ground clearance is disappointing as it slows down further
growth and does not provide equal competitive space to all
players," said Pravin Shah, chief executive, automotive division,
Mahindra & Mahindra.
Even Japanesses car manufacturer Toyota's Indian subsidiary raised
objections to the proposed levy on the SUVs.
"The market continues to remain sluggish and with the additional
excise duty levied on SUVs and UVs (utilty vehicles), the market
will be further impacted," said Sandeep Singh, deputy managing
director and chief operating offier, marketing and commercial,
The company's domestic market sales dropped from 12,756 units to
16,659 units, down by 23.4 percent.
In terms of two-three wheeler segment, TVS Motor closed last month
with lower sales at 165,696 units against 172,061 units.
However the company's total exports during February, 2013 grew by
22 percent from 17,960 units in February, 2012 to 21,896 units.
Meanwhile, two-wheeler major Honda Motorcycle and Scooter reported
an 11 percent rise in sales at 228,444 units from 206,043 units.
The company said its domestic market share stood at 19 percent.
The world's largest two-wheeler manufacturer Hero MotoCorp
registered sales of 501,271 unit in February - its fifth
consecutive month of five lakh-plus sales since October 2012.