Car sales in the country may have shown a marginal growth in February, but the Society of Indian Automobile Manufacturers (SIAM) is still cautious on the outlook for the industry. After a constant decline in past few months, February finally brought some good news for automakers. The domestic car segment showed a 1.4 percent growth during the month, mainly attributed to the recent cuts in excise taxes for automobiles.
While manufacturers have seen increased footfalls, analysts feel that the full effect of the move is yet to arrive. And according to a report by SIAM, car sales in India increased by 1.4 percent to 1,60,718 units in February from 1,58,512 units in the year-ago month.
“It will take some more time to see if the negative trends have reversed. We are getting feedback from companies that footfalls have increased,” SIAM Director-General Vishnu Mathur told reporters here.
Excise duty cut and the Auto Expo have created a positive sentiment, but it was too early to say if all this would translate into sales. “Month after month, numbers are so volatile, there is so much fluctuation that there is no trend visible,” Mathur added.
In past 11 months of this financial year (April-February), car sales dipped by 4.6 percent while the broader passenger vehicle segment witnessed a drop of 5.9 per cent. However, sales of commercial vehicles were down 29.84 percent to 47,982 units in the month. Over-all sales across different segments registered an increase of 4.99 percent to 15,23,693 units as compared to 14,51,263 units.