Domestic car sales in India shot through the roof in March as consumers rushed to showrooms in the first half of the month to avoid price hikes that came into effect from the middle of March.
The growth was led by Maruti, Hyundai and Tata. While Maruti saw its sales grow by over 2% to 112,724 units, Hyundai and Tata grew by over 22% and 33% respectively.
“We could meet our expectations in March as there was considerable interest to beat the expected price hike in the Union Budget,” said Arvind Saxena, director (sales and marketing), Hyundai Motor India Ltd. “The market continues to pose many challenges; things can improve if interest rates come down.”
Though the tax on diesel cars never materialised, excise duties were hiked by 2% to 5% in the budget. Honda, Volkswagen, Nissan and Toyota registered their highest ever sales in a month.
In the two wheeler space, Hero MotoCorp and former partner turned rival Honda Motorcycle and Scooters India led from the front. Hero sold almost 5.3 lakh two wheelers, while Honda did less than half that number but emerged as the second largest player for the first time ever in a month.