Domestic sales of passenger vehicles, commercial vehicles, tractors and two wheelers slumped during February 2013 as outlook continues to remain bleak due to current economic scenarios. Passenger vehicle sale volumes declined by 16.7% in Feb 2013 as compared to 4.6% in Jan 2013 and 1.1% in December 2012. Though overall demand continues to be low, contraction of passenger vehicles in the Indian auto industry can be attributed to the expectant union Budget in Q4 of 2012, which prompted many customers to purchase vehicles (pre-buy) owing to an imminent hike in excise duty for the same.
Mahindra & Mahindra, Maruti Suzuki and Hyundai are some of the large players in this segment. With launch of new age utility vehicle models like Rexton, Duster and Quanto, the utility vehicle segment has registered sales growth of 34.8% in February 2013. Domestic volumes of two wheelers, MCV and HCV, tractors continued to show negative growth of 2.8%, 35% and 3% respectively.
In all this turmoil the three wheeler segment did well to post a 1.35 volume growth for Feb 2013. Positive growth has been influenced due to sales of domestic passenger carriers, goods carriers in Feb 2013. However, positive growth can’t be expected to continue in the future as figures for Feb-Apr 2013 show a 4.55 decline due to economic slowdown, competition from LCV and SCV as also high financing costs.