Click to play videoNew Delhi: The February sales figures have brought good news for the automobile sector as most companies have reported double digit growth.
After months of slowdown and inventory pile-up, the auto sector showed some signs of recovery in February sales.
Maruti Suzuki registered its highest ever monthly sales in February - a growth of 25 per cent over last year, while Mahindra and Mahindra's total vehicle sales grew 22 per cent over last year.
Tata Motors reported its highest sales in the last four months in February, though the sales were 14 per cent lower than last year.
In the two-wheeler and three-wheeler segment TVS Motors recorded 13 per cent growth in the month, while Hero Honda showed 24 per cent growth.
But will the industry be able to sustain this growth?
"At least the worst of the last year is over and if we don't have much growth, I don't think we will decline much more. I don't think we will get 10-12 per cent growth we normally expect every year, I don't think that will happen, but I don't think it will be a high single digit. I think it will be less than that," said RC Bhargava, Chairman, Maruti Suzuki.
Experts say auto sales got a boost from the financial stimulus announced by the government, particularly for commercial vehicles.
Despite the continued pressure from high interest rates, lack of retail credit and the economic slowdown, they say the auto industry is likely to continue its growth story.
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