Indian car sales rose in February - the first time in five months - according to figures released Monday, but a top industry body said it was too early to say the market has finally turned around. The Society of Indian Automobile Manufacturers (SIAM) said domestic car sales increased 1.39 percent to 160,718 units in February from 158,512 units in the same month a year earlier. The rise was helped by introduction of new vehicle models.
"It will take some more time to see if the negative trends have reversed," SIAM Director General Vishnu Mathur told reporters. SIAM said the industry may get a lift from a government decision last month to cut car excise duties. But the rise in car sales, even if carried through to March, would not be enough to put the industry on a positive footing for the year, SIAM said. During the April-February period of the current financial year, car sales fell 4.6 percent from the same period a year earlier.
"The current fiscal year is going to end on a negative (note) for passenger and commercial vehicles," Mathur said. "Even if sales are much better in March, it won't be able to erase the effect of the rest of the fiscal year, which has been largely negative, he aid. Sales of commercial vehicles were down 29.84 percent to 47,982 units in February, the 10th straight monthly decline, reflecting a sharp slowdown in the economy. The vehicle sector is hoping the election of a new government could put the economy on a stronger growth track and boost consumer buyer sentiment.