Cars sales showed signs of picking up in March after the excise duty cut announced in the Budget, with Hyundai, Honda, Nissan and Ford India posting improved sales, although Maruti Suzuki and Mahindra reported decline.
Hyundai Motor India Ltd's (HMIL) domestic sales rose by 3.38 per cent to 35,003 units from 33,858 units in March, 2013. Honda Cars India also reported 83.4 per cent increase in its domestic sales at 18,426 units. Ford India's domestic sales were up 20.58 per cent to 6,356 units.
RBI Governor Raghuram Rajan with RBI deputy governors during the announcement of RBI monetary policy at the RBI Headquarters in Mumbai.(PTI)
Similarly, Nissan Motor India today reported over three- fold increase in its sales in March at 7,019 units, riding on the back of its newly launched entry-level small car Datsun Go.
Commenting on the market condition, Ford India Executive Director (Marketing, Sales and Service) Vinay Piparsania said: "The excise duty reduction has definitely been a positive step. As India gets set to vote, we look forward to such industry-friendly initiatives being sustained to support the important automotive sector."
Expressing similar sentiments, Mercedes-Benz India Managing Director and CEO Eberhard Kern told PTI: "The duty cut stimulated sentiments in the retail market a bit but it wasn't so big."
Mercedes Benz reported 27.12 per cent increase in its sales in India in the first quarter of 2014 at 2,554 units.
Nissan Motor India Vice-President Business Management Ajay Raghuvanshi said ever since the excise duty was cut, inquiry levels have gone up and in the last ten days of March the conversion to purchase also improved.
However, the improvement in sentiments did not result to positive growth for the country's largest car maker Maruti Suzuki India with its domestic sales declining by 5.2 per cent during the month to 1,02,269 units as against 1,07,890 units in March 2013.
Sales of the company's bread and butter segment mini cars comprising M800, Alto, A-Star and WagonR declined by 11 per cent to