Car sales in the country hit a new high in February with thousands speeding up their purchase on fears of a stimulus withdrawal leading to higher taxes in the Union budget. But carmakers and analysts expect slower rise in demand in the coming months as rising interest rates and new emission norms drive up car prices and the cost of financing. Monthly car sales crossed 1.5 lakh for the first time in February with a 33% year-on-year jump, according to the latest numbers released by Society of Indian Automobile Manufacturers (SIAM). Market leader Maruti Suzuki and its prime rival Hyundai Motor both reported highest domestic sales in a single month. Car sales in the country has been rising in double digits since early 2009 when the government announced an duty cuts and drove down interest rates to stimulate a slowing economy. In the 11 months ended February, carmakers reported a 25% jump in sales by selling 13.7 lakh vehicles. However, with the cost of ownership on the rise, the growth is expected to be moderate in coming months despite a slew of new launches. “We believe the demand growth will moderate in the coming two months but will remain in positive territory,” said Arvind Saxena, director, sales, at Hyundai Motor India.for further: economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Car-sales-at-record-high-in-February/articleshow/5660704.cms
