Even as major car makers such as Maruti Suzuki and Hyundai Motor posted double-digit growth

in domestic sales in December, the Centres decision not to extend excise duty benefits has put
the industry on the back foot.
As an interim measure to give a boost to the struggling automobile industry, the government
had announced a cut in the range of 4 to 6 per cent in excise duty on various vehicles.
Hike in prices
While most of the players have already announced plans to hike prices due to increasing input
costs, with the concession lapsing, the quantum of price rise could be over Rs.20,000 for small
cars and around Rs.40,000 for sedans.
Countrys largest car maker Maruti Suzuki reported a 13.3 per cent year-on-year increase in
domestic sales at 98,109 units in December 2014, while Hyundai Motor Indias sales were up
14.7 per cent at 32,504 units. Toyota Kirloskar Motor (TKM) said it sold 11,740 units last month,
a growth of 10.25 per cent.
In continuation of the November upswing, we have registered growth in the domestic and
overall sales in December as well. This momentum can be attributed to the year ending, Toyota
Kirloskar Motor Senior Vice-President (Sales and Marketing) N. Raja said.
On the other hand, Mahindra & Mahindras vehicle sales declined by 7 per cent to 34,460 units.
The company, however, reported growth of 5 per cent in sales of passenger vehicles, including
Scorpio, XUV 500, Xylo, Bolero and Verito.
We are happy to have achieved a growth of 5 per cent in our passenger vehicle segment in
December with 2014, an immensely challenging year for the auto industry, M&M Chief
Executive (Automotive Division and International Operations) Pravin Shah said.
General Motors India reported a 36.56 per cent decline in sales at 3,619 units in December.
Demand continues to remain suppressed on account of high interest rates and weak economic
fundamentals. The withdrawal of excise duty benefits is also a big jolt for the automobile
industry, General Motors India Vice-President P. Balendran said.
In the two-wheeler segment, market leader Hero MotoCorp reported a marginal rise of 0.21 per
cent in sales at 5.26 lakh units in December 2014. Chennai-based TVS Motor Company said
domestic two-wheeler sales stood at 1.57 lakh units last month, up 18.67 per cent.
Royal Enfield reported a 47.78 per cent increase in domestic sales in December at 28,179 units
as against 19,067 units in December, 2013.