Car sales in India drop 22.7% in February

Thursday, 13 March 2003, 20:30 IST
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Car sales in the Indian market in February dropped 22.7 percent over the same month the previous year as customers deferred purchases expecting a duty cut in the federal budget.

NEW DELHI: Sale of cars in February fell to 37,446 from 48,444 units sold in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM) Wednesday. Analysts say the duty cut, announced last month in the national budget for 2003-04, will help companies boost sales in the months ahead by luring more buyers. Finance Minister Jaswant Singh reduced the excise duty, or production tax, on cars, utility vehicles and tyres to 24 percent from 32 percent in the budget presented on February 28. The Indian auto industry has been battling for years with the government to reduce excise duties on cars. As much as 60 percent of a passenger car's cost in India is accounted for by taxes. Vehicle sales at Hindustan Motors, one of India's leading automobile makers, plunged 49 percent to 896 units in February as buyers put off purchase decisions. The company, which manufactures cars like the sturdy Ambassador, Mitsubishi Lancer, Pajero and multi-utility vehicles, recorded a 7.1 percent drop in the April-February period to 15,884 units. Maruti Udyog Ltd., a unit of Japan's Suzuki Motor Corp, sold 19,012 cars last months, registering a drop of 24.3 percent over 25,123 units sold in February 2002, the SIAM data showed. Sales at Hyundai Motor India Ltd., which makes popular hatchback Santro and Sonata and Accent sedans in the country, also witnessed a fall of 20.4 percent to 6,887 units in February. Sales of commercial vehicles, or trucks and buses combined, grew 40.6 percent to 19,527 units in February, up from 13,893 units sold in February 2002. In the April-February period, sales jumped 33.5 percent to 169,033.
Source: IANS