Passenger car sales in India rose only slightly in February due to a high sales base and as potential buyers, hoping for a cut in manufacturing tax that would make cars cheaper, put off their purchases, according to Reuters.
Go deeper with GlobalData
The Society of Indian Automobile Manufacturers said in a Monday statement cited by the news agency that car sales rose to 81,152 units from 80,476 units in the same month last year.
Car sales in the April-February period, the first 11 months of the fiscal year to March 2006, rose 5.9% to 1,000,412 units, from 944,974 a year earlier, as attractive discounts lured buyers, Reuters said.
Analysts reportedly have forecast the market to double to 2 million units by 2010 as millions of young, urban Indians earn ever-higher salaries and are tempted by new models.
The government, which has proposed cutting the manufacturing tax on small cars to 16% from the current 24% for the year to March 2007, wants to make India a global hub for the production of small cars, Reuters noted.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt added that sales of commercial vehicles – trucks and buses – surged 19.2% to 35,049 units in February helped by a vibrant construction industry and existing fleets being replaced.
