Sales of cars and two-wheelers kept on increasing in March despite latest price increases and partial withdrawal of stimulus package, aiding market leaders Maruti Suzuki and Hero Honda to superb sales in 2009-10.
Hyundai Motors, Tata Motors, Mahindra & Mahindra, General Motors, Ford, Fiat and TVS Motor also posted record annual sales and an unexpected two-digit growth in March due to intense marketing and discounts.
Intensive dealer drive and discount offers along with the charm of higher depreciation benefits guaranteed robust sales in March. This was despite a 2% increase in excise duty, fuel price and in higher interest rates, according to car financiers.
This might have driven the total car sales in India to 2 million in 2009-10, the excellent year till date for the country’s car business. In the initial 11 months till end of February, passenger car sales in the country were 1.75 million units.
A range of new cars in the market including Tata Nano, Hyundai i20, Maruti Suzuki Ritz and K-series Estilo, Fiat Punto and Honda Jazz, easy availability of low-cost car loans and the excise duty reduction guaranteed big demand for cars all around the year.