CHENNAI: India’s auto manufacturers have ended the year on a positive note, with most major players logging a rise in sales in March compared to the same month last year. However, with the new infrastructure cess coming into effect from April, experts are wondering if sales might not slow a little during the first month of the new financial year.
While Mahindra and Mahindra President & Chief Executive (automotive) Pravin Shah stated that the likely softening of interest rates in the upcoming RBI monetary policy will help the automotive industry maintain its growth momentum, experts are not so sure.
“At least in the short term, there will be a slowdown in sales because prices of all products will go up from April,” said a senior analyst.
India’s leading passenger vehicle manufacturer Maruti Suzuki reported a 15.9 percent growth in total sales for the month, clocking 129,345 units compared to the 111,555 units it sold last year. The company also posted record sales for the financial year, clocking an increase of 10.6 percent and selling 1,429,248 units, which is its highest ever sales figure.
The country’s second largest car maker Hyundai Motor India (HMIL) also registered growth, selling 51,452 units, up from 49,740 units sold in the corresponding month of 2015.
For the entire year, Hyundai also posted its highest ever sales total of 484,324 units, as against 420,668 units in 2014-15. A growth of 15.1 per cent.
Tata Motors Ltd sold 53,057 units for the month, as against 52,479 units last year and recorded a 2% increase in total sales for the entire year, as compared to FY 2014-15. While March sales for Mahindra & Mahindra increased to 52,718 from 45,124 units.
In the two wheeler segment, Eicher Motors logged 52 per cent growth, selling 51,320 motorcycles, while Chennai based TVS Motor Company reported a 10.19 percent increase in total sales, selling at 2,32,527 units in March. The Chennai-based company had sold 2,11,005 units in the same month last year.