Car sales in February plunged by 25.7 per cent, the biggest fall in more than 12 years. The fuel price hike and slow economy are believed to have put major impact on the demand of automobile in the market.
According to data from the Society of Indian Automobile Manufacturers (SIAM), car sales were dropped to 1, 58,513 units in February this year, compared to 2, 13,362 units in the same month of 2012.
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Similarly, motorcycle sales in February declined by 4.5 per cent to 8, 00,185 units from 8, 37,743 units in same month last year. Commercial vehicles such as Truck and bus sales were also dropped by 11.1 per cent to 68,388 units from 76,891 units in the same month of 2012.
Total two-wheeler sales in last month were declined by 2.77 per cent to 11, 12,289 units from 11, 43,982 units in the same month of previous year. The vehicle sales in India in all the categories declined by 5.45 per cent to 14, 51,278 units in February 2013 against 15, 34,910 units in the same month of 2012.
The demand for buying luxury sedans, mini cars and motor bikes seems to decline after state-run oil companies decided to hike fuel prices every month. Despite a series of economic reforms by Indian government, the sluggish economy still continues.