Maruti Suzuki’s February sales pulled down by Jat agitation

Mumbai: Domestic sales of car market leader Maruti Suzuki India Ltd remained almost flat in February over the year-ago period as production at its facilities in Haryana got crippled following the Jat reservation agitation. The maker of Swift and DZire models sold 108,115 units during the month compared with 107,892 units last year, the company said in a statement on Tuesday.

“During the month, the reservation agitation had disrupted component supplies, causing a temporary suspension of production by the company,” it said, adding that the total production loss due to this was over 10,000 units.

The sales were primarily dragged down by a 11.2% drop in sales of the company’s mini models, including the Alto and Wagon R. The company’s total passenger car sales during the month was down 3.7% over last year.

Meanwhile, exports in February shrunk 12.4% to 9,336 units.

After advancing for 14 straight months, car sales in India dropped marginally in January. Auto makers sold 168,303 cars in January, a 0.72% drop from 169,303 a year ago, according to industry lobby Society of Indian Automobile Manufacturers (Siam).

Finance minister Arun Jaitley in his budget speech on Monday proposed to increase the cess on passenger vehicles by as much as 4%. The measure, aimed at checking vehicular congestion and to generate revenue, could end up hitting demand. Jaitley proposed a 1% cess on CNG, LPG and petrol cars, 2.5% on small diesel cars, and 4% on vehicles with higher engine capacity. He also proposed a 1% luxury tax on purchase of vehicles worth Rs.10 lakh or more. The much anticipated scrappage incentive scheme for cars and commercial vehicles, which was being mooted to curb air pollution, did not find any mention in the budget.

Maruti Suzuki India Limited