 "Auto sales continue upward swing in September")
An improvement in market sentiment, coupled with new launches and lowered fuel prices, helped passenger vehicle manufacturers post good sales numbers in September. Domestic sales of nine of the country’s leading automobile companies during the month stood at a combined 208,923 units, seven per cent more than the 195,339 units they sold in the same month last year.
Even as the number of units sold in September was higher than those in the previous month, the seven per cent annual growth rate during the month was lower than the 18 per cent for August. This slow rate of growth was expected in September, as demand is usually feeble during Pitra Piksha, a 15-day period during which Hindus abstain from acquiring assets.
New models such as the Honda Mobilio, Hyundai i20, Tata Zest, Toyota Etios Cross and Datsun Go brought additional volumes for carmakers during the month. Also, dealers stocked up for the festive season of Navaratri and Dussehra.
Maruti Suzuki, the country’s largest carmaker, reported a nine per cent increase in domestic sales to 99,290 units, against 90,399 in the same month a year ago. The Swift, Celerio, Dzire and Ritz models boosted the company’s sales; this segment grew 18 per cent on an annual basis. Maruti also said it had started production and dispatch of its Ciaz, a sedan that is yet to be launched.
New launches also helped Honda Cars India, which posted 45 per cent sales growth to 15,015 units, retaining its position as the fourth-biggest in the country. Over a third of Honda’s sales was accounted for by the Mobilio, its multi-seater family car that aims to take on Maruti’s Ertiga and Toyota’s Innova in the segment. Jnaneswar Sen, senior vice-president (marketing & sales), Honda Cars India, said: “We continue to perform strongly, with a strong demand for all our models during this festival period. Our top performer, the City, successfully resumed its production during September; we will be able to ensure better availability and timely delivery in coming months.”
A note from financial services firm Motilal Oswal confirmed that inventories at various dealerships were on the rise last month. “The sentiment has improved since the general elections. This has driven inquiries and their conversions, particularly for passenger vehicles. Concerns on monsoon have also abated, with narrowing of deficit in major regions,” the note said.
The sweep of the sentiment, though, was not uniform across the industry. For instance, General Motors India, Ford Motor India and Tata Motors continued to lag in September. General Motors, which relaunched the Sail and Sail hatchback with minor facelifts, reported a drop of nearly 40 per cent in sales. Similarly, Tata Motors, despite the debut of the Zest sedan, posted a seven per cent sales decline during the month.
“There is some positive movement in the market due to the festive season and new entries. However, the complete recovery of the automobile industry is still some time away,” said P Balendran, vice-president, General Motors India.
Mahindra & Mahindra, the market leader in the utility vehicle segment, sold five per cent more units during September and is confident of a demand turnaround. It is banking on its latest launch, the new Scorpio, to push sales.
Pravin Shah, chief executive (automotive division & international operations), Mahindra & Mahindra, said: “The sales numbers for September have been encouraging and we are glad that the automotive industry is turning the bend. We expect the ensuing festive season to bring in some much-needed cheer, with a slew of new launches from manufacturers, besides a reduction in the current account deficit and stable and reducing fuel prices.”
Even as the number of units sold in September was higher than those in the previous month, the seven per cent annual growth rate during the month was lower than the 18 per cent for August. This slow rate of growth was expected in September, as demand is usually feeble during Pitra Piksha, a 15-day period during which Hindus abstain from acquiring assets.
New models such as the Honda Mobilio, Hyundai i20, Tata Zest, Toyota Etios Cross and Datsun Go brought additional volumes for carmakers during the month. Also, dealers stocked up for the festive season of Navaratri and Dussehra.
Maruti Suzuki, the country’s largest carmaker, reported a nine per cent increase in domestic sales to 99,290 units, against 90,399 in the same month a year ago. The Swift, Celerio, Dzire and Ritz models boosted the company’s sales; this segment grew 18 per cent on an annual basis. Maruti also said it had started production and dispatch of its Ciaz, a sedan that is yet to be launched.
New launches also helped Honda Cars India, which posted 45 per cent sales growth to 15,015 units, retaining its position as the fourth-biggest in the country. Over a third of Honda’s sales was accounted for by the Mobilio, its multi-seater family car that aims to take on Maruti’s Ertiga and Toyota’s Innova in the segment. Jnaneswar Sen, senior vice-president (marketing & sales), Honda Cars India, said: “We continue to perform strongly, with a strong demand for all our models during this festival period. Our top performer, the City, successfully resumed its production during September; we will be able to ensure better availability and timely delivery in coming months.”
A note from financial services firm Motilal Oswal confirmed that inventories at various dealerships were on the rise last month. “The sentiment has improved since the general elections. This has driven inquiries and their conversions, particularly for passenger vehicles. Concerns on monsoon have also abated, with narrowing of deficit in major regions,” the note said.
The sweep of the sentiment, though, was not uniform across the industry. For instance, General Motors India, Ford Motor India and Tata Motors continued to lag in September. General Motors, which relaunched the Sail and Sail hatchback with minor facelifts, reported a drop of nearly 40 per cent in sales. Similarly, Tata Motors, despite the debut of the Zest sedan, posted a seven per cent sales decline during the month.
“There is some positive movement in the market due to the festive season and new entries. However, the complete recovery of the automobile industry is still some time away,” said P Balendran, vice-president, General Motors India.
Mahindra & Mahindra, the market leader in the utility vehicle segment, sold five per cent more units during September and is confident of a demand turnaround. It is banking on its latest launch, the new Scorpio, to push sales.
Pravin Shah, chief executive (automotive division & international operations), Mahindra & Mahindra, said: “The sales numbers for September have been encouraging and we are glad that the automotive industry is turning the bend. We expect the ensuing festive season to bring in some much-needed cheer, with a slew of new launches from manufacturers, besides a reduction in the current account deficit and stable and reducing fuel prices.”