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| Maruti, Tata, Hero Honda March Vehicle Sales Rise Maruti, Tata, Hero Honda, GM and Ford March Vehicle Sales Rise : FoxBusiness.com Quote:
NEW DELHI-(Dow Jones)- Demand for new cars and motorcycles in India continued to soar in March, despite recent price increases by auto makers, with Maruti Suzuki India Ltd. (532500.BY), Mahindra & Mahindra Ltd. (500520.BY), Tata Motors Ltd. (TTM: 19.2, 0.11, 0.58%), Hero Honda Motors Ltd. (500182.BY) and local units of Hyundai Motor Co. (005380.SE), General Motors Co. and Toyota Motor Corp. (TM: 81.1499, 0.6499, 0.81%) posting higher sales.
India on Feb. 26 raised excise tax on automobiles by two percentage points as part of a gradual withdrawal of stimulus measures used to shield Asia's third-largest economy from the global economic downturn that began in 2008.
The tax increase was widely expected and prompted many auto makers to raise prices by about the same amount.
Auto sales, however, remained robust, with Maruti--India's largest auto maker by sales--posting an 11% rise in March sales to 95,123 vehicles. Local sales rose 8% to 79,530 vehicles, while exports surged 32% to a record 15,593, the local unit of Japan's Suzuki Motor Corp. (7269.TO) said.
However, Maruti's small car sales, considered its bread-and-butter, slid 1.2% to 54,763 vehicles in March. This is the first decline in monthly small car sales since December 2008 for Maruti, which makes one in every two cars sold in India.
Lower sales of small cars led to a 1.6% decline in Maruti's total car sales in March, compared with February.
Maruti's total sales in the just-ended fiscal year rose 29% to 1.02 million units, making it the only company to produce one million vehicles in India. Local sales rose 21% to 870,790 units, while exports more than doubled to 147,575 vehicles.
"Capacity constraint and increased competition in the small car segment has hit Maruti's sales in the category," said Surjit Arora, an analyst with Mumbai-based brokerage Prabhudas Liladher. "March is usually a better month sequentially and Maruti's sales have come down compared to February. That's why we see stock reacting so negatively."
The dominance of small cars in India has led Ford and Volkswagen to enter the segment this year, while Nissan Motor Co. and Toyota plan to launch small cars later in the year, increasing competition for Maruti.
Ford and GM both gained market share in India, selling record numbers of small cars in the past month.
Ford said sales grew threefold due to strong demand for its Figo hatchback, which was introduced in March. The auto maker sold 9,478 cars and SUVs during the month and booked more than 10,000 Figo cars.
GM's sales more than doubled from the year earlier in March to 11,330 vehicles. A bulk of the volumes, nearly 70%, came from the small car segment, where it sells the Chevrolet Beat and Spark models. It sold 4,508 Beat small cars and 3,266 units of the Spark.
Sales at Tata Motors, India's largest auto maker by revenues, rose 35% to 75,151 vehicles, while exports grew twofold to 4,105 vehicles. The company sold 27,761 units of Tata-branded cars and SUVs in the local market, up 17%. It also distributes Fiat-branded vehicles in India under a marketing and distribution alliance.
Tata Motors' truck and bus sale in the local market during March rose 49% to 43,285. The company sold a total of 642,686 vehicles in the last fiscal year, a growth of 29%, while exports in the 12-month period grew by 2% to 34,141 vehicles, it said.
Mahindra, India's largest sport-utility vehicle maker by sales, posted a 20% rise in March total sales to 31,698 vehicles. Local sales grew 16% to 29,944 vehicles while exports rose more than fourfold to 1,754 vehicles, it said. Hyundai's local unit posted a 19% jump in its total sales in March to 55,035 vehicles. Local sales rose 27% to 32,501 vehicles while exports rose 10% to 23,534. The company sold 600,588 units in the just-ended fiscal year, a growth of 21%.
Sales at Hero Honda Motors, India's largest two-wheeler maker by sales, rose 17% in March to 414,638 vehicles. In the last fiscal year, the company sold 4.6 million two-wheelers, up 24%, the company said.
TVS Motor, India's third-largest two-wheeler maker by sales, said its total sales in March grew 24% to 146,736 vehicles. It sold 126,669 two-wheelers in the local market, up 25% from a year earlier, while exports gained 23% to 20,067 vehicles. Sales for the fiscal year climbed 15% to 1.52 million vehicles, TVS said.
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