Boom in Automobile Sector

       February month’s automobile sales figures released and good news is that every company posted impressive jumps in their sales, percentage wise, for the same month of last year, from Two Wheelers, Three Wheelers, Small Car, Sedan and Sports Utility Vehicle every model of all the companies registered attractive sales figures, lot of points become reason for the boom like –

• Companies utilized time before February month with good sales policies to woo customers by informing through advertisements that prices of cars, bikes are going to increase in coming days because of speculations of increase rate in excise duty.
•  Rumors of roll back of stimulus packages, which was pass on to industrial sector by government last year because of worldwide downturns, so that it wont effect Indian economy very much, but certainly there was differences’ of opinion on the roll back as some expert were believing it will be roll back fully and some were saying it will partially roll back.

Sales figures of February month of Cars -

• General Motors India started its India operation in the year 1996 and it is very first time that they have touch the sale of 10,000 units in one month as per company spokesperson, total units they have sold 11,111 which is 126% jumps of sale from February 2009 which was 4,921 units.
• Tata Motors has sold 69,427 vehicles over 43,811 vehicles sold in February 2009, lifting the sales figure up by 58%. Tata Motor’s domestic sales went up by 56% at 66,190 vehicles compared to 42,493 sold in February 2009. While exports came in at 3,237 vehicles, up by 146%.
• Hyundai Motors India sold 54,617 units in the month of February 2010 in both the front that is domestic and exports which is jump of 42.08 %, while break up of their sales is, in India they sold 31,001 units which is jump of 46.13 % and exports touches 23,616 units.
• Maruti Suzuki reported highest sales in the month of February that is 84,765 units in India and 11,885 units abroad, total 96,650 units which is jump of 22.04 % of their sales from February 2009 which was 79,190 units.
• Mahindra & Mahindra sold 27,894 units in the month of February 2010 which is jump of 39.04 % sales from last year’s February month which was 20,061 units.
• Fiat India sold total 2,335 units in February 2010 which is jump of 78 % from their February, 2009 total sales which was 1,309 units.
• Toyota Kirloskar Motors recorded a 101% growth with 5,993 units last year they sold 2,976 units.
• Honda Siel sold 6,275 units in the February this year against 5,579 units last, recorded an increase of 12.5%.

Sales figures of February month of Two wheelers–

• Hero Honda sold 382,096 units against last year figures of 329,055 units, a growth of 16% and with cumulative sales of 41,85,492 units in this fiscal year, Hero Honda has crossed four million sales, well before the completion of the fiscal year.
• Bajaj Auto’s total sales stood at 268,678 units as compare to last year sale of 153,782, up by 74.71% YoY while exports touched 77,642 units, it was 50,738 units last year.
• TVS’ total sales is up 31% to 140,000 units and it was 107,000 units last year same period on YoY basis.
• Yamaha’s total sales 25,766 units as compare to YoY last year 17,407 units.

One can say jumps in the sale of Automobile in the month of February on MoM and YoY basis is because of presentation of budget in the house and expectation of price increase by companies because of change in tax duties whose impact often seen immediately that is from first week of March month.