Auto industry in India registered record sales in the month of February

Automobile companies in India have registered record sales figures in the month of February this year. The month of February had turned out to be a windfall month for car companies in India as country's largest car maker Maruti Suzuki has registered the best-ever monthly sales in its 29 years of operations here.

Where the sales of India's largest car manufacturer Maruti Suzuki jumped 22%, the sales of Hyundai Motors increased 43% in this period which is company's best performance in last 12 years of its operations here. On the other hand Tata Motors, which is country's biggest auto maker in terms of revenue registered a 58% on-year jump in its vehicle sales.

The government of India had increased the excise duty by 2% last week and auto makers in the country immediately increased the car prices up to Rs 1 lakh. In the month of January the passenger car sales had touched 1.83 lakh units, compared to 1.35 lakh units in January 2009.

Major car makers in India including Maruti, Tata, Honda Siel, Mahindra & Mahindra, Toyota and General Motors have also increased the production to catch up with the increased demand. The demand has also been boosted many new car launches in the country including Chevrolet Beat which was launched in the month of January this year. Besides this many cars are expected to be launched in the country including Ford Figo, Toyota Etios and Volkswagen Polo.

“The growth momentum, with double-digit sales growth, is likely to continue this month, too. However, it may not be sustainable in the long run. We expect a compounded growth rate of 10-15% and passenger vehicle volumes to touch 3.5 million units in 2015,” said Rakesh Batra, partner and national director for auto practice at consulting firm Ernst & Young.

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