Vehicle Sales Get Festive Boost

Driven by the festive demand, auto market got a shot in the arm, with vehicle sales clocking robust numbers in October. Total sales in domestic market across all vehicle categories stood at 2,035,821 units in October 2015, which translated into a 13.9% growth over domestic sales tally of 1,787,160 units during the same month in 2014.

Passenger vehicle sales ride on new offerings

Passenger vehicles remained on a steady growth curve, on the back of new offerings. The Indian market saw a healthy 21.5% rise in passenger vehicle sales at 268,629 units in October 2015 viz-a-viz 221,163 units in October 2014. 

Domestic sales of the market leader, Maruti Suzuki India Ltd (MSIL), surged by 24.7% during the month to 1,21,063 units as against 97,069 units in October last year. Maruti Suzuki's small cars including, Alto and WagonR recorded domestic sales of 37,595 units in October 2015, compared with 35,753 units in the year-ago month – up 5.2%. Dispatches in the compact segment, comprising Swift, Estilo, Ritz, Dzire and recently launched Baleno, rose by 37.7% y-o-y to 51,048 units.

Rival Hyundai Motor India Ltd (HMIL) also saw its highest-ever monthly domestic sales at 47,015 units in October 2015, compared with 38,010 units in October 2014, which worked out to a decent 23.7% increase. However, HMIL’s exports stayed in negative terrain, falling by 18.5% from 18,009 units in October last year to 14,686 units in October this year.

Rakesh Srivastava, Sr VP - Sales and Marketing, HMIL said, "Hyundai sales of 47,015 units are all-time highest with an all-time high sales of Grand i10 with 14,079 units and continued strong performance of modern premium brands CRETA & Elite i20/Active with 18,244 units. We are maximising production to minimise the waiting period."

Honda Cars India Ltd (HCIL) reported a 52.3% increase in its domestic sales at 20,166 units in October 2015. It had sold 13,242 units in the same month last year. Model wise domestic sales break-up of HCIL for October 2015 stood as: Brio – 820 units, Jazz - 4,496 units, Amaze - 6,971 units, City - 7,022 units, Mobilio – 770 units, and CR-V – 87 units. HCIL also exported a total of 134 units during October 2015.

“The festive demand has led to a strong growth for HCIL during October wherein we recorded our highest monthly sales of this fiscal year," Jnaneswar Sen, Senior Vice President Marketing & Sales, HCIL said.

Mahindra and Mahindra (M&M) sold 24,060 passenger vehicles, comprising cars, UVs and vans, in domestic market during October 2015 -  up 18.8% year-on-year.

Pravin Shah, President & Chief Executive (Automotive), M&M said, “The advent of the festive season has provided the much needed fillip for the auto industry. At Mahindra we are happy with our performance during October 2015, which has witnessed a positive growth of 20% backed by excellent response garnered from the recently launched TUV300.”

Tata Motors’ domestic passenger vehicle sales grew by 11.1% to 12,747 units in October 2015 from 11,469 units a year ago. The growth trend was driven by the cars segment, specifically the new launches. Domestic sales of Tata passenger cars at 11,049 units in October 2015 were higher by 15.2%, compared to 9,594 units in October 2014. UV sales declined by 9.4% y-o-y to 1,698 units in October 2015.   

Ford India, making the most of its new launches – Figo and Figo Aspire, clocked a whopping 48.9% growth in domestic sales at 10,008 units in October 2015 vis-a-vis 6,723 units in October 2014. The company’s exports soared 112.2% y-o-y to 10,412 units during the month. Total sales adding up to 20,420 units in October grew by a handsome 75.6%.

Toyota Kirloskar Motor (TKM) reported a 1.2% decline in domestic sales in October 2015. The automaker sold 12,403 units in the domestic market, against 12,556 units a year ago. TKM exported 1,205 units, thus, selling a total of 13,608 units in October 2015. 

N Raja, Director and Sr Vice President, Sales & Marketing, TKM said: "The New Liva has received an overwhelming response from buyers. The sale of new Camry continues to grow and has already exceeded the total Camry sales in 2014.”

2W sales back in growth lane in October

After lacklustre performance in the last few months, 2-wheeler sales were back on the growth track, thanks to the ongoing festive season, with all major 2-W makers posting growth in October, except for Bajaj Auto. Total 2-wheeler sales in the Indian market at 1,656,235 units in October 2015, recorded a 13.3% uptick, as against 1,461,712 units a year earlier.

Hero MotoCorp Ltd (HMCL), the world’s largest two-wheeler manufacturer, reported sales of 639,802 units (including exports) in October – its highest ever sales in any month. This is a growth of 11.3% over the corresponding month last year, when the company had sold 575,056 units. HMCL had crossed 6-lakh-plus-unit sales on four previous occasions – September 2015 (606,744), September 2014 (604,052), May 2014 (602,481) and October 2013 (625,420).

Adding two more products in its scooter range, Hero MotoCorp crossed the landmark 1-lakh unit sales in scooters in a month selling 108,441 units of scooters (including 4,528 units of export) during October 2015. In the domestic market, Hero MotoCorp scooter sales grew by 74.6% in October this year over the corresponding month in 2014. As a result, the market share of Hero MotoCorp in the Indian scooter market rose from 13% in September to almost 20% at the end of October. 

The biggest gainer in terms of volume increase year-on-year was Honda Motorcycle & Scooter India (HMSI), which witnessed an incremental sale of 70,217 units in domestic market. Clocking domestic sales volume of 431,887 units in October 2015, HMSI posted a healthy 19.4% growth (October 2014: 361,670 units).

With its domestic two-wheeler sales figure reading 231,491 units in October 2015, TVS Motor Company recorded 13.3% growth over 204,294 two-wheelers sold in the Indian market in October last year. TVS also posted a decent 17.8% y-o-y increase in two-wheeler exports that stood at 32,621 units in October 2015.

India Yamaha Motor, which is consistently witnessing growth in its two-wheeler sales, crossed the domestic monthly sales-mark of 70,000 units for the first time ever since its entry in India in 1985. The company sold 70,812 two-wheelers in the domestic market during October 2015, which marked a remarkable y-o-y growth of 29.5%. The company had crossed the domestic monthly sales mark of 60,000 units for the first time in August 2015.

Continuing its strong growth momentum in the domestic market, Royal Enfield registered sales of 44,138 units in October 2015 as against 25,510 units in October last year, witnessing a spectacular 73.0% growth. The company aims to become the largest player in the mid-segment bikes globally.

Bajaj Auto was an exception in an otherwise buoyant market during festive season. The company’s two-wheeler sales in the Indian market dipped 1.1% to 202,042 units in October 2015 from 204,281 units in October last year.

LCV sales turning positive a good sign

In an upbeat sign, commercial vehicle sales in October 2015 indicated broad-based growth. In what is very good news for the industry, the LCV sales turned positive in October, suggesting that the recovery is underway, albeit a slow one for the segment, which has seen more than two years of slump.

Tata Motors’ total domestic sales of CVs at 26,170 units in October 2015 were down 4.1% (October 2014: 27,291 units). Tata M&HCVs remained on fast track, clocking double-digit growth of 20.8% in domestic sales to 12,504 units in October 2015 (October 2014: 10,352 units). On the other hand, Tata LCV sales remained negative, falling by 19.3% y-o-y to 13,666 units during the month.

Maintaining growth momentum, domestic CV sales of Ashok Leyland at 8,436 units in October 2015 were up 15.4% over 7,311 units in October 2014.

Mahindra M&HCV sales in domestic market remained strong, growing by 169.0% to 581 units in October 2015 (October 2014: 216 units). Domestic LCV sales of M&M at 18,153 units in October were up 28.7% y-o-y.

VE Commercial Vehicles (VECV) saw double-digit growth of 39% during October 2015 with domestic sales of 3,466 units (October 2014: 2,494). 

Thanks to the spike in festive demand, coupled with lower interest rates, low fuel prices, pent up demand and new launches at very attractive prices, the auto market has been able to achieve an all-round growth after a long time. The broad-based growth in October has, in turn, rekindled hope of sustainable turnaround of auto market. However, rural blues continue to be a cause of worry.

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