Bike sales drop, cars maintain pace in Feb

An expectation of duty cut in the Budget has impacted vehicles 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, primarily helped by strong sales from General Motors and Mahindra Renault.

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.

City-based analysts said, "The car industry hasn't disappointed as much as expected, because the base of February 2007 had been high especially for Maruti. Although there was a hint of cautiousness among the buyers for the Budget outcome, the prospects looks much better in March as a result of excise cut."

In February, 94,756 car units were sold compared with 92,618 units in the same month of the previous year. In all 125,843 units were sold in passenger vehicles category, which comprises cars, utility vehicles and multi-purpose vehicles, up 7.83 per cent, compared with 116,699 units in the corresponding 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, recording a fall of 17.68 per cent at 425,089 units (516,410 units).

Bajaj Auto and TVS Motors have emphasised that the fall was because of a reduction of finance availability and drop in 100cc bike sales.

"Although there hasn't been any upliftment in the finance availability in some regions of the north leading to an erosion in growth of two-wheelers, 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," said the analyst.

The two-wheeler segment sold 542,578 units In February compared with 631,514 units sold in the previous comparable period. Sales of three-wheelers also dipped 15.72 per cent at 28,547 units.

The overall vehicle sales fell by 10 per cent at 742,027 units (826,396 units).