As the entire country awaits Mr. Pranab Mukherjee’s announcement for the revised budget for the fiscal year 0212-2013, an increase has been observed in the purchase of cars after the July 2011 meltdown. For the first time in 3 years, the requirement for cars had reduced owing to the hike in interest rates and the ever increasing petrol prices.
However, February 2012 saw a pleasant change as more and more people rushed to buy cars pushing the car sales up to 13.11%. History was created when the total number of car sales went up to 2,11,402 in one single month for the first time ever. Maruti Suzuki India, India’s biggest car manufacturer sold the highest number of units followed by Hyundai Motor India and Tata Motors. The sale of two-wheelers also increased drastically to 11,44,500 units with Hero MotoCop leading the way in terms of maximum sales.
The apprehension of a hike in car prices in the budget scheduled to be announced this week seems to be the catalyst that has led this this jump in motor vehicle sales. People are being encouraged to buy cars before the budget is announced as an increase in the excise duty is being expected this year. In addition to that, the ministry may levy certain additional taxes on diesel cars thereby increasing their prices as well. However, there is a positive factor behind this sudden growth spurt in car sales – the interest rates are not expected to undergo a hike anytime in the recent future. The opportunity of having stability with respect to the interest rate coupled with an anticipated price hike post the budget announcement has led a chunk of the Indian population to bring about this sudden growth in car sales.