Business & Finance

India's auto makers post higher sales in February

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The company, majority-owned by Japan's Suzuki Motor Corp, said sales rose 6.5 percent year-on-year to 118,949 vehicles.

Maruti, which last year suffered a series of crippling labour disputes at one of its plants in the northern state of Haryana, showed a 5.2 percent rise in sales in January.

The January figures represented Maruti's first growth in sales for eight months. The firm lost production of 106,000 vehicles between June and October due to the labour issues but the unrest has now eased.

Sales in February were strongest for hatchbacks -- the Swift, Estilo and Ritz -- and the larger DZire car.

Rival vehicle maker Tata Motors said its domestic sales in February rose 9.16 percent year-on-year to 34,832 vehicles and sales of its flagship small cheap car, the Nano, rose by 11.5 percent.

South Korean giant Hyundai Motor's local subsidiary said sales increased 13 percent with 36,805 units in February, but Ford India said it sold 10,424 cars -- a near three percent dip year-on-year.

India, which has been one of the world's fastest growing car markets in recent years, suffered a slowdown in demand in 2011 as many buyers decided to defer purchases or cancel them due to costly loans and rising fuel expenses.

However demand has picked up slightly since November as inflationary pressures have started to ease.

Analysts expect car sales to improve in the coming months, with India's central bank predicted to start lowering interest rates as inflation shows signs of moderating.

Industry body Society of Automobile Manufacturers forecasts car sales to grow 11-13 percent in 2012-13.

Copyright AFP (Agence France-Presse), 2012