The recent excise duty cuts leading to revised car prices might have made auto makers hopeful regarding surge in demand, however, it seems to be fruitful for some while some car makers are still facing dip in sales.
Honda Cars India Ltd. posted a whopping growth of 123% in the month of February 2014, on the back of its revivified City sedan with a diesel heart and the already popular Amaze compact sedan. Hyundai on the other hand registered growth of 2% in domestic sales, but saw fall in exports in February 2014.
Post the excise duty cut, inquiries have increased which implies that customers are showing interest in buying cars, however the picture will be more clear with the March sales figure in determining if the excise duty cuts have worked in favour of the car makers or not.
Toyota India too proclaimed its monthly sales for the month of February 2014, the company sold 11,284 units last month against 13,979 units sold in the same period last year. In the domestic market, Toyota sold 10,100 units and exported 1,184 units of Etios twins to overseas market. In February 2013, Toyota had witnessed domestic sales of 12,756 units which imply that the monthly sales have declined this year. Company officials opine that despite revised prices, auto makers still have to cope with the aftermaths ofspiralinghigh interest rates, stooping rupee and fluctuating fuel prices.
