Car sales rise in February for all Auto Companies
All major auto companies have recorded higher car sales in the month of February showing recovery in the industry.
Many expected the prices to go up after the budget and hence the sales in the month rose to records high. Maruti Suzuki, General Motors and Hyundai all recorded the highest ever monthly sales growth.
Analysts believe that the there will be fall in demand due to the people buying the cars before they would have. The government announced a rise of 2% in excise duty in the budget on February 26 and hence the retail prices of most cars went up.
Maruti sold a total of 84765 units in February more than 20% higher than the 70,625 units sold in February 2009. The small car segment for the company grew 20% while its multi-utility sales grew 40%. This is higher ever sales for the company.
Tata Motors sales grew 42% at 26,985 units including that of Indica hatchback at 11,502 units in the month. The company sold 4,105 units of Nano.
The sales of Hyundai were also higher than January at 31,001 units with a growth of 46% over the 21,215 units sold last year. The shares of the auto companies rose on the BSE after sales numbers were announced.
The shares of Maruti were up 1.7% at Rs 1489, M&M were 4.6% higher at Rs 1054.15, Bajaj auto closed up 1.7% at Rs 1848.8. Even as the prices rise, the new launches and easy finance is expected to keep the demand high.