Auto industry back on track in February

Tuesday, March 3, 2009 at 5:03 am

Showing signs of recovery after months of slowdown, the country’s auto industry recorded robust growth in car as well as two-wheeler sales last month, primarily led by Maruti Suzuki, Hyundai and Hero Honda.

Honda Siel Cars, Mahindra & Mahindra, India Yamaha and TVS Motor also saw their sales growing in February.

The domestic sales of Maruti Suzuki stood at 70,625 units compared with 59,311 units in the same month a year-ago, up by 19.08 per cent. The company’s last month’s figures represented its highest ever “February-sales”.

MSI also registered the highest ever exports at 8,565 units against 4,511 units in the corresponding month last year, a jump of 89.87 per cent.

The country’s second largest carmaker Hyundai Motor India also posted a 45.31 per cent jump in domestic passenger car sales at 21,215 units in February against 14,600 units in the same month of 2008.

Home-grown auto major Mahindra & Mahindra reported a rise of 6.6 per cent in its domestic sales in February at 19,594 units against 19,764 units in the same month last year.

Premium carmaker Honda Siel Cars India saw a jump of 47.83 per cent in its sales at 5,579 units against 3,774 units in the year-ago period.

However, Tata Motors’ domestic sales fell 15.16 per cent in February at 42,493 units compared to 50,084 units in the year-ago period. General Motors India saw its sales dip 11.54 per cent in the domestic market at 4,921 units against 5,563 units in the same month in 2008.

The country’s auto industry has been bleeding since the middle of last year due to economic slowdown. The sales of auto makers were affected on account of un-availability of easy finance and high interest rates on vehicle loans.

However, the slew of sops announced by the government since December, including a 4 per cent excise duty cut, and the signals given by the Reserve Bank to other lenders to reduce interest rates on automobile loans helped to turnaround the declining trend in the auto industry.

Meanwhile, the sales of two-wheelers in February also showed growths. Market leader Hero Honda Motors jumped by 24 per cent at 3,29,055 units compared to 2,65,431 units in the same month last year.

India Yamaha Motor posted almost a three-fold rise in sales during February at 15,033 units against 5,746 units sold in the same month last year. Chennai-based TVS Motors, sold
1,07,301 units last month, up 13 per cent, against with the year-ago period. It had sold 95,235 units in February 2008.

However, bike maker Bajaj Auto’s total two-wheeler sales during the month stood at 1,32,393 units, down 17 per cent decrease over the same month last year.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Auto industry back on track in February

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