Car and bike sales in India register growth in May 2014: New Budget by July
The month of May 2014 proved momentous for two and four wheeler manufacturer in India who had gone through many months of lower than expected sale. The establishment of a stable government at the Centre, reduced prices and a lower excise duty introduced in interim Budget has brought in a revival of sorts in the auto industry.
Maruti Suzuki posted a 12.35% increase in sales with 74,536 units delivered as compared to 66,342 units delivered in May 2013. Hyundai Motor sales also increased by 12.18% with 35,955 units delivered as against 32,052 units delivered in May 2013 while Honda Cars India reported sales increase to the tune of 18% with 13,303 units delivered as compared to 11,2274 units sold in May 2013. Tata Motors and M&M however were not as successful, posting 22.35% and 14.57% decline in sales respectively.
Bike and scooter sales increased by 16.3 % in the month of May, when total sales stood at 14,02,830 units from 12,06,173 units in May 2013. While it may be too early to expect a long term revival, auto and two wheeler companies are hoping that the government will extend the current excise rates beyond June 30, 2014.
The interim budget brought with it a cut from 12% to 8% where small cars, two wheelers and commercial vehicles were concerned, while on SUVs the cut was from 30% to 24% and on larger cars the cut was from 27% to 24%.
Now the industry awaits for the Budget which the new stable is going to present, probably in the second week of July 2014. Auto industry hopes for an even further decline in duties, which will push auto sales even further.
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