Car sales rise in Feb, cos fear higher interest rates
NEW DELHI, Mar 02: New models fuelled car sales growth in February as companies such as Maruti Suzuki, Mahindra & Mahindra and Tata Motors posted higher volumes on healthy demand. However, with interest rates moving up, companies fear that the going may be tough in coming months.
Maruti saw a 13% growth in numbers at 1.4 lakh units against 1.2 lakh units in the same month last year. The company launched new-generation Swift hatchback at the Delhi Auto Expo in February.
Hyundai had a relatively slower growth in volumes at 44,505 units against 42,327 units in February last year. The company, which had recently launched a new version of the Verna sedan, said comfortable economic growth and steady interest rates and fuel prices have helped achieve higher numbers.
Ford India witnessed a rise in demand as sales grew to 9,041 units against 8,338 units. “Improvements in GDP growth and other industry indicators continue to support year-on-year growth of the auto industry,” Anurag Mehrotra, president and MD of Ford India, said. “There are headwinds in terms of impending increase in interest rates and inflation. Increase in customs duty and cess on exports will drive up prices, with a potential of hitting demand.”
