New Delhi/Chennai, March 2 : Dented by high fuel and interest costs, automobile manufacturers on Monday reported mixed sales for February.
Sales of India's largest passenger car manufacturer Maruti Suzuki grew by 8.7 percent in the month under review at 118,551 units from 109,104 units sold in the corresponding period of last year.
Domestic sales of the company increased by 8.2 percent at 107,892 units during the month under review from 99,758 units sold in the corresponding month of 2014.
Chennai-based automobile manufacturer Hyundai Motor's (HMIL) overall sales including exports grew by 2.4 percent in February 2015.
The company managed to sell 47,612 units during February 2015 from an off-take of 46,505 units sold in the like period of last year.
The company's domestic sales during the month under review grew by 9.7 percent at 37,305 units from 34,005 units sold during the corresponding period of 2014.
"Reduction in interest rates could bring in the thrust to break the threshold of low growth and initiate the double digit growth," said Rakesh Srivastava, senior vice president-sales and marketing, HMIL.
Other major players in the Indian auto market, Tata Motors and Mahindra & Mahindra (M&M) reported a mixed sales results.
Tata Motors' overall sales, including exports, during February increased by 11 percent and stood at 44,225 units from 39,951 units sold during the like period of last year.
Domestic sales of the company grew by 14 percent at 40,314 units from 35,315 units sold in February 2014.
Mahindra and Mahindra's overall sales including exports during February declined by 10 percent and stood at 38,033 units from 42,166 units sold during the corresponding period of last year.
The company's domestic sales last month were down 11 percent and stood at 34,918 units from 39,338 units sold during February 2014.
"With an expected revision in lending rates in the RBI (Reserve Bank of India) policy in early April, the industry should see better times ahead," said Pravin Shah, chief executive, automotive division, Mahindra & Mahindra.
Indo-Japanese car joint venture Toyota Kirloskar Motor closed last month with a total sales growth of 17 percent. The company sold 13,280 units including exports in the month under review from an off-take of 11,286 units in February 2014.
Other Japanese automobile major Honda's domestic sales during the month under review grew by 16 percent at 16,902 units from 14,543 units sold in the corresponding month last year.
US-based General Motors' Indian subsidiary's sales during last month plunged by 22.95 percent and stood at 4,320 units from 5,607 units sold in the corresponding month of last year.
"Going forward, car sales will be driven mainly by new entries and we expect the market to gain only momentum if interest rates are reduced in phases to facilitate consumer spending since over 85 percent vehicles are purchased through financing,"" said P. Balendran, vice president, General Motors India.
Two- and three-wheeler maker TVS Motor Company closed last month with 15 percent growth in sales volume.
The company said it sold 204,565 units (two-wheelers 195,509 units, three-wheelers 9,056 units) last month up from 177,662 units (two-wheelers 170,293 units, three-wheelers 7,369 units) sold in February 2014.
However, another two-and three-wheeler manufacturer Bajaj Auto's February sales declined by 22 percent at 243,319 units from 313,294 units in the corresponding period of the previous year.
Two-wheeler major Hero MotoCorp's February sales declined by 3.85 percent and stood at 484,769 units from 504,181 units sold in the corresponding month of last year.
"Hero MotoCorp is set to launch a slew of new models in the coming months, including a range of scooters," the company said in a statement.
Honda Motorcycle and Scooter India's sales during February increased by 10 percent at 3,61,493 units from an off-take of 3,28,468 units sold in February 2014.
