Bike sales drop, cars maintain paceBike sales drop, cars maintain pace in February
Apnaloan.com Research Bureau
11 Mar 2008
A cut in the excise duty in the Budget has impacted vehicle sales in February as customers held back their buying decision.
According to the monthly sales data from the Society of Indian Automobile Manufacturers (Siam), car sales grew by just 2.30 per cent.
Maruti sales grew by less than one per cent in the domestic market. Sales in the passenger vehicles segment grew at 7.83 per cent, of which, utility vehicles and multi-purpose vehicles grew at 29 per cent.
Models including Chevrolet's Spark, Hyundai's i10 and Mahindra Renault's Logan posted respectable sales following strong demand.
In February, 94,756 car units were sold compared to 92,618 units in the same month of the previous year.
Meanwhile, the two-wheeler segment saw a disappointing month once again as sales dipped 14 per cent on account of lack of financial support from institutions.
Motorcycles sales took a beating fall of 17.68 per cent at 425,089 units.
Bajaj Auto and TVS Motors have emphasised the fall on a reduction of finance availability and to a drop in 100cc bike sales.
According to analyst, the excise duty cut may bring some relief to the overall numbers this month as almost all manufacturers have decided to pass on the benefit of the duty cut to the customers.