In February 2017, the automobile sector in India saw a marked increase in the number of vehicles sold. Carmakers like Honda Cars India, Renault India, Nissan, and Maruti Suzuki India gained many customers. Let us take a look at what happened.
- Demonetisation’s impact declined:
Demonetisation had led to a decrease in the sale of cars. This was natural after the ban on high-value currency in India. Automobile sales were on a decline after 8 November 2016. The disruption in cash flow had a direct impact on the sector. Sales across segments had declined by 5.48% in November 2016. It fell further to 18.66% in December. But the auto industry since then seems to have recovered from the impact of demonetisation. Car sales have gone up considerably in February. You may see an increase in the following months as well.
- Effect on the car sales of leading manufacturers:
Maruti Suzuki sold 10.9% more utility vehicles in February 2017 than the previous year. Hyundai, India’s second-largest automaker, sold about 42,327 vehicles in February 2017. Contrast this with the 40,716 units it sold in February 2016. Honda Cars India sold around 14,997 units in February this year. In the same month last year, it had sold 13,710 vehicles. Nissan and Renault also saw a good increase in their sales numbers. Thus, car sales in February have seen a marked increase.
- Domestic car sales increased, two-wheeler sales decreased:
India has seen an increase in the number of vehicles sold. Domestic car sales went up 4.9% to 1,72,623 units in February 2017. The sales in February 2016 were only 1,64,559 units. This is as per the Society of Indian Automobile Manufacturers (SIAM). But two-wheeler sales decreased to 13,62,045 units. In February 2016, it stood at 13,62,177 units. Motorcycle sales fell 3.13% in February this year to 8,32,697 units from 8,59,582 units last year. This implies that people seem to prefer buying cars to two-wheelers. This has led to an increase in car sales.
- Car exports increased:
The increase in car sales was not just in the domestic sector. In February, there was an increase in exports as well. Maruti Suzuki registered a growth of 2.2% in exports. The company sold 9,545 vehicles in February as compared to 9,336 units last year. Hyundai India, the nation’s largest passenger car exporter exported 10,407 vehicles in February, up 15.5% on a year-on-year basis. Honda Cars saw an increase of 7.75% in exports. Thus, all leading manufacturers registered a growth in car sales in February 2017.
The sale of commercial vehicles also increased by 7.34%. All in all, February was a great month for purchasing cars. Here’s hoping for more growth in the coming months!