Auto sales zoom in Feb, ahead of likely price rise after Budget | autos | Hindustan Times
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Auto sales zoom in Feb, ahead of likely price rise after Budget

The domestic car sales grew in February logging the best ever sales in a month as the consumer sentiment registered a turnaround from the scepticism that ruled for much of this fiscal. HT reports. Beating a hike?

autos Updated: Mar 13, 2012 03:06 IST
HT Correspondent

The domestic car sales grew in February logging the best ever sales in a month as the consumer sentiment registered a turnaround from the scepticism that ruled for much of this fiscal. The consumers rushed their purchases before the Union Budget on Friday, where a hike in duties is expected, which in turn will make the cars expensive.

Car sales grew 13% during the month to 2,11,402 units, the first time ever that more than 2 lakh cars were sold in a month. It is widely expected that excise duties on all cars would be raised by 2% with an additional surcharge on diesel cars.

The stellar sales in February on the back of a similar performance in January, is certain to lift overall sales in the fiscal to the positive zone. With only a month to go, car sales have grown by 0.3% in this fiscal so far. Till December 2011, it was down 2.5%. Last month's growth was the biggest in 10 months.

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"The sentiment has certainly improved as interest rates are not likely to go up now," said Vishnu Mathur, director general, Society of Indian Automobile Manufacturers (SIAM). "Liquidity is no longer a constraint. Also there is always a trend of consumers advancing their purchases before the budget when a hike in duty is expected. It is visible now as well."