The passenger vehicle (PV) sales trend in February seems to indicate that the vehicle demand is on a gradual recovery path. Though auto industry has been fuming over discontinuation of excise duty benefits, PV sales of leading carmakers have seen growth for the second consecutive month, after expire of duty sops on December 31, 2014.
Companies such as Maruti, Hyundai, Honda, Tata and Toyota recorded growth in the range of 8 to 22 per cent in their February domestic sales when compared with a year ago period. But, Mahindra & Mahindra and General Motors have reported decline in their sales.
Key highlights of February sales include Tata Motors’ rise to 5th position from 6th in PV sales table, Maruti’s healthy growth across models and segments, Honda City’s dominance in the mid-size sedan segment despite stiff competition from Maruti Ciaz and zooming sales of Honda Amaze.
Maruti has reported eight per cent growth in its overall domestic sales at 107,892 units. Entry segment (Alto & WagonR) sales have seen a growth of 7.1 per cent at about 40,000 units, while Ciaz continue to clock monthly sales of over 5,000 units. Ertiga also sustains its momentum with monthly sales of about 6,000 units.
Second largest car brand Hyundai’s domestic sales were up at 37,305 units. “The growth in additional & repeat buyers is higher than that of first time buyers. Reduction in interest rates could bring in the thrust to break the threshold of low growth,” said Rakesh Srivastava, Senior VP- Sales and Marketing of Hyundai.
Honda continued to maintain its strong double digit growth powered by entry sedan Amaze and mid-size sedan City. Of the total domestic sales of 16,902 units in February, Amaze and City accounted for 7,163 units and 6,505 units respectively.
Tata reported health growth of 22 per cent at 13,767 units, aided by strong Zest sales and the good response to Bolt. Toyota also sustained its strong digit growth at 11,802 units.
“We expect a gradual recovery in automobile demand as consumer confidence improves in the line with the improving economy. In the near term, however, the volume growth could remain relatively subdued,” Subrata Ray, Senior Vice President-Corporate Ratings Icra said.
In two wheelers, Honda Motorcycle & Scooters and TVS Motor company reported 11 per cent growth each in their domestic two wheeler sales at 348,145 units and 164,508 units respectively.
