 "February sales of passenger vehicles in low gear")
After a flat performance in January, sales of passenger vehicles (cars, vans and utility vehicles) grew only 2.45 per cent in February, based on data of eight companies, hit mainly by flat growth by Maruti Suzuki.
Experts say imposition of the new one to four per cent infrastructure cess on PVs will further impact demand.
Maruti, the country’s largest car manufacturer, has reported flat growth in February sales, with production hit by the Jat agitation in Haryana. The company said its domestic PV sales grew 0.2 per cent to 108,115 units last month. The reservation agitation had disrupted component supplies, causing temporary suspension of production.
“Total production loss due to this was over 10,000 units. Despite that, the company was able to achieve marginal growth in domestic sales,” Maruti said. Its stock price hit a 14-month low on Monday, ending the day at Rs 3,495, up 7.8 per cent at the BSE.
This performance by Maruti, which has 46 per cent of the domestic PV market, impacted the industry’s growth for February. Its closest competitor and second largest player, Hyundai, reported 9.1 per cent growth in domestic sales, at 40,716 units last month.
“These grew on the strong performance of three brands — Creta, Elite i20 and Grand — in spite of logistic challenges for transportation of vehicles to North India and loss of many business days of dealership operations across Haryana,” said Rakesh Srivastava, senior vice-president (sales and marketing).
“The imposition of an infrastructure cess of one to four per cent would increase prices of automotive products immediately. An increasing number of duties levied on automobiles is a cause of concern and we see the need for GST (the much-debated national goods and services tax) sooner than later,” said Pravin Shah, ITS president and chief executive (automotive).
Tata Motors reported A sales decline of 20 per cent in February. Japan’s Toyota continues to see a decline, hit by the substantial ban on diesel vehicles in the National Capital Region.
The ban, imposed by the Supreme Court on vehicles with a 2,000cc engine and above, is till March 31. France's Renault said its sales jumped 158 per cent to 8,834 units in February, due to strong demand for its Kwid, whose bookings have crossed 100,000 units. Ford saw its sales decline eight per cent.
“Generally, customers follow a wait and watch approach while purchasing vehicles in the first quarter of the year. This is clearly reflected in February sales. The gloom in the rural economy continues to impact sales of two-wheelers and the small car sales segment,” said Abdul Majeed, partner at Price Waterhouse.
Experts say imposition of the new one to four per cent infrastructure cess on PVs will further impact demand.
Maruti, the country’s largest car manufacturer, has reported flat growth in February sales, with production hit by the Jat agitation in Haryana. The company said its domestic PV sales grew 0.2 per cent to 108,115 units last month. The reservation agitation had disrupted component supplies, causing temporary suspension of production.
“Total production loss due to this was over 10,000 units. Despite that, the company was able to achieve marginal growth in domestic sales,” Maruti said. Its stock price hit a 14-month low on Monday, ending the day at Rs 3,495, up 7.8 per cent at the BSE.
This performance by Maruti, which has 46 per cent of the domestic PV market, impacted the industry’s growth for February. Its closest competitor and second largest player, Hyundai, reported 9.1 per cent growth in domestic sales, at 40,716 units last month.
“These grew on the strong performance of three brands — Creta, Elite i20 and Grand — in spite of logistic challenges for transportation of vehicles to North India and loss of many business days of dealership operations across Haryana,” said Rakesh Srivastava, senior vice-president (sales and marketing).
“The imposition of an infrastructure cess of one to four per cent would increase prices of automotive products immediately. An increasing number of duties levied on automobiles is a cause of concern and we see the need for GST (the much-debated national goods and services tax) sooner than later,” said Pravin Shah, ITS president and chief executive (automotive).
Tata Motors reported A sales decline of 20 per cent in February. Japan’s Toyota continues to see a decline, hit by the substantial ban on diesel vehicles in the National Capital Region.
The ban, imposed by the Supreme Court on vehicles with a 2,000cc engine and above, is till March 31. France's Renault said its sales jumped 158 per cent to 8,834 units in February, due to strong demand for its Kwid, whose bookings have crossed 100,000 units. Ford saw its sales decline eight per cent.
“Generally, customers follow a wait and watch approach while purchasing vehicles in the first quarter of the year. This is clearly reflected in February sales. The gloom in the rural economy continues to impact sales of two-wheelers and the small car sales segment,” said Abdul Majeed, partner at Price Waterhouse.