The demand for passenger vehicles in Indian auto market has witnessed a dip in the month of February 2013, which has raised questions that whether March 2013 will end with a successful record or not. During the month, the sales volume in passenger vehicle segment fell by 16.7 per cent in comparison with 4.6 per cent in January 2013 and 1.1 per cent of December 2012. It must be noted that not just demand for passenger vehicles contracted, but also sales of tractors, commercial vehicles and two wheelers have also witnessed a dwindle. The demand for two wheelers witnessed a fall of 2.8 per cent, whereas Medium and Heavy Commercial vehicles (HCV) recorded negative growth of 35 per cent and 3 per cent, respectively.
Although the overall demand in automobile sector remained low, the contraction in sales of passenger vehicles was recorded due to proposed hike in taxes in the recently presented Union Budget. Reportedly, the proposed increase in prices forced a number of buyers to pre buy models because of an imminent surge in the excise duty. Reportedly, some of the key players of the Indian auto market like Maruti Suzuki, Hyundai and Mahindra & Mahindra are said to be pulling high volumes in the passenger vehicle segment, instead of fall in their sales. Interestingly, with the launch of cutting edge utility vehicles like Duster, Rexton and Quanto, the compact utility vehicle segment has witnessed a growth of 34.8 per cent in sales during February 2013.
Industry experts are of a view that the entire auto Indian sector is in dire need for some positive news after the unfavourable Union Budget, which recently appeared in the daylight. As the ongoing fiscal is about to end on March 31, a number of auto makers are expecting to end it on a good note be recording some decent sales during the month.