Auto Sales Moderates in July 2018

The automobile industry ended the first month of the second quarter with a decent 10.35% growth across segments. The industry’s domestic sale grew by 7.97% at 2,244,875 units; and exports by 26.09% at 397,782 units. 

Passenger Vehicle sales experienced de-growth in the domestic market by 2.71% at 290,960 units. Both, cars and Utility Vehicles were in negative terrain while Vans posted a growth of 2.79%. Total sales(domestic + export) during the month was at 354,886 units.

Commercial Vehicles sales in the Indian market, was up by 29.65% with M&H CVs growing 24.50% to 28,299 units and upswing by LCVs at 32.88% to 48,198 units in July 2018. In the international market also the segment achieved 30.85% uptick YoY.

Two wheelers also recorded growth of 8.17% at 1,817,077 units while Three Wheeler segment notched 46.24% at 60,341 units during the month of July 2018 in their domestic sale.

Auto sales moderated during the month due to the eight day long transport strike, uncertainties created by the revision in axle load norms and the high base in July 2017 due to the post GST implementation when dealers had restocked inventory.

Maruti Suzuki India (MSIL), clocked a 0.6% downtick in its domestic passenger vehicle sales that stood at 152,427 units in July 2018, compared to 153,298 units a year earlier. MSIL’s export also faltered by 10.8% at 10,035 units against 11,256 units exported during the same month in the previous year. Company’s total sales slided by 1.3% at 162,462 units against 164,554 units sold in the same month last year. 

Sales of mini segment cars, including Alto and WagonR, and even the sales of company’s flagship mid-sized sedan Ciaz fell by 10.9% and 99.2%, selling 37,710 units and 48 units respectively during the month.

Meanwhile, the compact segment of Maruti Suzuki India featuring offerings like Swift, Celerio, Ignis, Dzire, Baleno and Tour S went on to post growth of 17.8% in July’18. Sales of company’s utility vehicles, including Gypsy, Ertiga, S-Cross and Vitara Brezza however, decreased by 4.9% to 24,505 units in July, from 25,781 units in the same month of 2017.

Hyundai Motor India Ltd (HMIL) sold 43,481 units in domestic market during July 2018, slightly up 1.1% (July 2017: 43,007 units). The company’s exports at 16,109 units during the month, however, impressively increased by 30.9% y-o-y. 

HMIL registered a cumulative sale of 59,590 units for the month of July 2018.

Commenting on the July sales Y K Koo, MD & CEO - Hyundai Motor India Ltd. said, ”Hyundai continues strong growth trajectory with cumulative volume of 59,590 units registering a growth of 7.7% on the strong performance of GRAND i10, New ELITE i20, New 2018 CRETA and Next Gen VERNA. .” 

UV major, Mahindra & Mahindra witnessed de-growth of 5.8% in passenger vehicles segment (which includes UVs, Cars and Vans) in the domestic market. M&M sold 19,739 vehicles, against 20,962 vehicles a year ago. However, the total sales of company (including exports) stood at 20,447 vehicles during July 2018, as against 21,484 vehicles during July 2017, registering a negative growth of 4.8%. 

Commenting on the monthly performance, Rajan Wadhera, President, Automotive Sector, Mahindra & Mahindra, said, “The auto industry has been subject to certain uncertainties with the truckers strike and sluggishness on the retail front which has impacted the passenger vehicle segment.”

Another home-grown player, Tata Motors sold 19,410 passenger vehicle, including cars, utility vehicles and vans in domestic market during July 2018, which marked a growth of 15.6%, vis-a-vis 16,793 units in July last year. This was driven by continuous strong demand for Tiago, Tigor, Hexa and Nexon. The recently launched Nexon AMT by the company witnessed an overwhelming response and good traction in the market. Cumulative sales of PV in the domestic market for the fiscal (April-July 2018) was at 70,016 units, a growth of 41% compared to 49,791 units for the same period, last fiscal.

Riding on strong demand of City, WR-V and new Amaze, Honda Cars India Ltd (HCIL) clocked sale of 20,608 units in India, witnessing a growth of 18.2% in July 2018 (July 2017: 17,435 units). The domestic sale of HCIL in July at 19,970 units registered an uptick of 16.9%. In the international market also the company achieved whopping 82.3% growth against sale of 638 units.

Rajesh Goel, SVP & Director, Marketing & Sales, Honda Cars India,  said, “We have recorded our best ever July sales, thanks to the overwhelming response to the All New Amaze and sustained momentum for City and WR-V. We have been maximizing the supply of new model Amaze in the market to reduce its waiting time.”

Toyota Kirloskar Motor (TKM) sold a total of 13,677 units in the domestic market in July 2018, a negative growth by 23.0% (July 2017: 17,758 units). The company exported 747 units of the Etios series during the month thus clocking a total sale of 14,424 units in July 2018.

Commenting on the sales performance, N Raja, Deputy Managing Director, Toyota Kirloskar Motor said, “We are happy that we have achieved a growth of 36% in the combined sales of June-July as compared to the same period last year. With the dedicated efforts of all our stakeholders, we have registered a significant growth in June-July 2018 irrespective of the highest July sales last year. Also Jan –July 2018 we have posted a growth of 13% as compared to first seven months last year.”

Ford India reported a decline of 7.2% in domestic sales y-o-y to 7,816 units in July 2018 compared to 8,418 units a year ago, while exports stood at 17,212 units (July 2017: 17,657 units). Ford India’s combined domestic wholesales and exports in July registered 25,028 vehicles, compared to 26,075 vehicles in July 2017, a 4% decline.

“The transport strike impacted both the production as well as shipment of Ford vehicles in July. In the same period, we reached One million customers in India and remain thankful for their continued faith and trust. Our unrelenting focus on India strategic pillars - Strong Brand, Right Products, Competitive Cost and Effective Scale – continues to ensure that we grow faster than the industry & bring more customers to the Ford family in the time to come” said Anurag Mehrotra, President and Managing Director, Ford India.

Likewise, Renault India and Nissan India also registered a negative percentage rate of 30.6 % y-o-y to 6,217 units (July 2017: 8,961 units) and 35.7% y-o-y to 2,802 units (July 2017: 4,360 units) respectively in domestic sales during July 2018.

Domestic two-wheeler maker Hero MotoCorp sold 663,283 units in July 2018, as against 611,307 units in the corresponding month last year, registering a growth of 8.5%. 

Speaking about the sales numbers, Pawan Munjal, Chairman, MD, and CEO, Hero MotoCorp, said, “We are confident of carrying the growth trajectory forward and expect to grow at double-digit in the upcoming festive season. The normal monsoon in most parts of the country, and the consequent agricultural harvest will keep the sentiments buoyant and help maintain the momentum. Economic growth, rural investments and initiatives such as MSP, MNREGA etc. augur well for the future growth of the industry.”

Honda Motorcycle and Scooter India (HMSI), which was marginally 0.7% lower than the corresponding sales figure of 511,960 units for July 2017. HMSI’s exports, however, was in positive trajectory gaining 23.3% growth to 40,162 units during the month.

TVS Motor registered decent double growth of 16.8% with sales (including exports) increasing from 263,336 units in July 2017 to 307,516 units in July 2018. 

The Pune-based bike maker, Bajaj Auto notched up 22.1% increase, selling 201,433 units in July. 

Popular motorcycle manufacturer, Royal Enfield clocked 6.1% uptick in its domestic sales that added up to 67,001 units in July this year (July 2017: 63,157 units).

Domestic sales of India Yamaha Motor at 69,097 units in July’18 gained traction by 4.5% at 69,097 units vis-a-vis 66,135 units, a year ago.

Suzuki Motorcycle India Pvt Ltd (SMIPL) reported a strong 56.7% rise in its total sales at 53,321 units in July 2018 as against 34,037 units in the same month last year. 

The commercial vehicle manufacturer, Tata Motors’ commercial vehicles sales in domestic market in July 2018 were at 32,486 units, a growth of 25.0% compared to 25,982 units in July 2017.

Ashok Leyland notched up sales growth of 35% in July 2018 with total sales of 14,205 vehicles (which includes M&H CV, LCVs & UVs), as against the sales of 10,524 vehicles in the same month last year.

Commercial vehicle sales of Mahindra & Mahindra (M&M) in the Indian market aggregated 19,284 units in July 2018 – up 28.3% y-o-y. In the Medium and Heavy Commercial Vehicles segment, M&M sold 941 vehicles for the month, registering an impressive growth of 24%; and in the Light Commercial Vehicle segment the company sold 18,343 vehicles registering 28.6% uptick YoY. M&M exports vroomed with the sale of 1,752 Commercial Vehicles achieving growth of 61%.

VECV sold 5,158 units in July 2018 in Indian market as against 3,714 units in July 2017, recording a growth of 38.9%. Exports by the company achieved a whopping 25.9% growth YoY.

With good monsoon, increased customer confidence in purchasing new vehicles, stabilisation of macro-economic factors and festive season round the corner, positive growth momentum in automobile sales is sure to keep pace with in times ahead.

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