Auto makers on a high: Hyundai grows 71%, Maruti 62%, GM 81%

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New Delhi, March 1 : Anticipation of yet another hike in interest rates, coupled with attractive discounts, fuelled car sales in February with players like Maruti, Hyundai, General Motors and Honda recording growth rates of over 60%. Bike sales, though, were relatively modest with Bajaj Auto witnessing a deceleration due to supply constraints.

Maruti, the country's largest passenger car manufacturer, saw sales jumping as much as 61.6% in February at 59,095 units as against 36,338 units in the same month last year, led by bumper sales in its compact car segment comprising Alto, WagonR, Swift and the newly-launched Zen Estilo. On total sales of 42,913 units, the segment grew a massive 79.6% growth in February. Sales of Maruti 800, however, continued the month-on-month downward journey, declining 2% at 5,955 units. For close rival Hyundai India, the growth in the domestic market was 74% at 15,459 units, spurred by high sales of Santro. Honda Siel India reported a growth of 60% as it sold 3,521 units against 2,195 units while General Motors India had sales rising 81% in February at 3,087 units.

According to analysts, the high demand was fuelled by fears of a further spike in interest rates which have already hardened over the last few months following the government's efforts to suck out liquidity from the system. Another factor that led to the growth in the pre-Budget season was the generous discounts offered by companies like Maruti to prop up sales.

Tata Motors reported a 19% growth in sales at 21,322 units, that include 12,580 units of Indica. Mahindra and Mahindra, however, saw a marginal growth in numbers as sales -- primarily contributed by flagship Scorpio -- registered a meagre 5% rise at 9,486 units in February. On the two-wheeler front, market leader Hero Honda saw sales grow 12% at 2,80,515 units against 2,50,695 units in the same period last year, which included small numbers of scooters. However, close rival Bajaj Auto, which has witnessed a near 30% growth in bike sales so far this fiscal, saw numbers go down in February as it sold 1,71,780 units against 1,75,256 units in the same month last year.