Price hike fears? March sees highest year-end sales for carmakers

New Delhi: Major car makers, including Tata Motors, Mahindra and Mahindra, and Toyota on Sunday posted record sales in March on the back of customers advancing their purchases fearing price hike after Budget.

About seven vehicle makers announced robust sales in March 2012 over the corresponding period a year ago with Tata Motors crossing one lakh unit sales mark, while Mahindra & Mahindra and Honda Siel recorded highest ever monthly car sales as demand for new models and diesel cars continued to accelerate.

[caption id=“attachment_262731” align=“alignleft” width=“380” caption=“About seven vehicle makers announced robust sales in March 2012 over the corresponding period a year ago. Reuters”]  [/caption]

Anticipating increase in car prices post Budget, customers preponed their purchases during last month, market analysts said. Soon after the Budget was announced, leading car makers had said that the vehicles would become expensive by up to Rs 3 lakh as they will pass on increase in excise duty in the

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Budget to customers.

Toyota Kirloskar Motor (TKM) Deputy Managing Director (Marketing) Sandeep Singh said, “… the demand next month could be impacted due to the increase in excise duty, registration tax and VAT.” TKM, a joint venture between the world’s largest carmaker Toyota and the Kirloskar Group, said it recorded an 87 per cent increase in car sales to 18,220 units in March, driven by highest ever monthly sales of its ‘Etios’and ‘Liva’ models.

Tata Motors reported a 20 percent jump in total vehicle sales during March at 100,414 units compared to 83,363 units sold in the same month last year.

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Its total passenger vehicle sales in the domestic market rose 34 percent at 36,984 units in March, highest ever in a month, over 27,678 vehicles sold in the year-ago period.

In the commercial vehicles segment, the company sold 58,063 units in the domestic market last month against 49,753 units in the same period last year, up 17 percent.

Mahindra & Mahindra posted 25 percent increase in sales at 47,001 units in March – the highest ever monthly sales number in the history of the company.

Similarly, Honda Siel Cars India, joint venture between Japanese auto major Honda and the Siel Group, recorded a three-fold jump in its sales for March 2012 at 11,016 units. German luxury car maker Audi reported 47 per cent jump at 1,002 units. Two-wheeler maker India Yamaha Motor posted a 14 percent increase in its total sales at 41,886 units.

VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, announced a 19.5 percent rise in its total sales at 6,051 units in March, 2012.

Auto makers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra and India Yamaha had earlier expressed their unhappiness over the government’s decision to hike the duties in the Budget.

Even German luxury carmaker Audi sold 1,002 cars in March, 47 percent more than last year. Audi also posted its strongest first quarter by selling 2,269 cars, 41 percent more than the first quarter of 2011.

Agencies