Auto sales enter fast lane with double-digit growth

NEW DELHI: Passenger vehicle sales in India climbed in double digits in February, with compact cars and utility vehicles spearheading the rebound in demand.

Commercial vehicles too posted better sales in line with a pickup in manufacturing and infrastructure activity, according to sales data issued by individual automakers on Monday. Auto sales in India are recorded as wholesales or factory dispatches and not retail sales.

Maruti Suzuki, which sells one in every car sold in the country, recorded a 9.9% rise in sales from a year ago in February to 147,483 units. The growth was due to continuing demand for the company’s affordable, fuelefficient hatchbacks as more people opted for personal mobility. Hyundai Motor India continued to reap benefits of a shift in customer preference towards sport-utility vehicles in urban areas. Sales jumped 29% from a year ago in February to 51,600 units, powered by the Venue and Creta SUVS, and the new version of the i20 hatchback. To be sure, higher factory dispatches come on back of a low base in the yearearlier month when automakers were facing a squeeze in demand due to an economic slowdown and increase in vehicle prices due to change in norms.