Post Diwali A Quieter November for Auto Market

While vehicle sales remained on growth curve in November 2015, the sales numbers failed to live up to the buzz of October 2015 that had seen healthy growth after a prolonged sluggish phase. Total domestic sales at 1,654,226 units in November 2015, encompassing 2/3-wheeler, passenger vehicle and commercial vehicle segments, recorded modest growth of 3.2% over 1,603,312 units in November last year.

Passenger Vehicles Maintain Growth Momentum on the Back of New Models

Riding on new models, passenger vehicle sales in domestic market continued their good run, rising by 11.4% to 236,664 units in November 2015 from 212,437 units a year ago. However, passenger vehicle exports lost the momentum, declining by 8.6% y-o-y to 51,381 units during the month.

Market leader, Maruti Suzuki India (MSI) clocked 110,599 units of domestic sales in November 2015, which translated into a 10.6% increase over 100,024 units in the same month last year. While domestic sales of the entry level Alto and Wagon R hatchbacks dipped 4.7% to 35,981 units in November, MSI’s compact cars (Swift, Celerio, Baleno, Dzire and Ritz) posted sales of 44,626 units - a decent 19.5% increase (November 2014: 37,339). The carmaker also saw sales of its UVs (Ertiga, S-Cross and Gypsy) rise 57.5% y-o-y to 8,688 units in November 2015. Domestic sales of the Omni and Eeco vans recorded a moderate growth of 1.9% y-o-y to 12,432 units in November. The company’s exports at 10,225 units during the month grew by a modest 1.0% y-o-y.

Hyundai Motor India Ltd (HMIL) witnessed domestic sales of 43,651 units in November 2015, vis-a-vis 35,511 units in November 2014, thereby registering a healthy 22.9% growth. The company’s exports, however, plummeted by 25.4% y-o-y to 14,010 units during the month.  

Rakesh Srivastava, Sr VP (Sales and Marketing), HMIL, said, “Hyundai achieved a cumulative 4 million domestic sales milestone with a volume of 43,651 units the month on the strength of strong demand for its product portfolio led by the CRETA, i20 and Grand i10.”

Home-grown Mahindra & Mahindra (M&M) sold 19,662 passenger vehicles, including UVs, cars and vans, in the local market during November 2015, clocking a robust growth of 35.9% vis-à-vis 14,472 in November 2014. 

Pravin Shah, President & Chief Executive (Automotive), M&M, said, “The festive season, coupled with new product launches and moderation in interest rates, has seen the auto industry post a positive growth during the last couple of months. I believe speedy implementation of GST will help and have a long term impact on the competitiveness of Indian auto industry. At Mahindra, we have been buoyed by our new product launches such as the TUV300 as well as growth momentum of existing products like Bolero, Scorpio and XUV500.”

Tata Motors’ passenger vehicles recorded a 12.5% decline in domestic sales at 10,470 units in November 2015 compared to 11,969 units in November 2014. UV sales of Tata Motors continued to slide, falling by 22.9% y-o-y to 1,298 units in November 2015. Domestic sales of Tata cars at 9,172 units, were lower by 10.8% y-o-y.

Honda Cars India Ltd (HCIL) registered domestic sales of 14,712 units in November 2015, as against 15,263 units in the corresponding month last year, posting a negative growth of 3.6%. Honda City continued to be a popular buy among consumers, with sales figure of 6,342 units. The Amaze sedan was the next best-seller with 4,106 units. Domestic sales figures for other Honda models, viz. new Jazz, Brio, Mobilio and CR-V stood at 3,367 units, 461 units, 393 units, and 43 units, respectively. HCIL also exported 120 units during November 2015.

Toyota Kirloskar Motor (TKM) sold 10,278 units in the domestic market in November 2015, down 15.6% compared to 12,175 units a year ago. 

N Raja, Director and Sr VP, Sales and Marketing, TKM, said "As we move towards the end of the year, we witnessed a growth of 7% in our sales from January to November 2015 when compared to the same period last year. The Etios series has also clocked a cumulative growth of 9% from January to November 2015. There is an overwhelming response to the new Liva introduced during the festive season. Likewise, the sale of Camry continues to grow with over 1000 units of the model already sold this year."

Ford India sold 17,189 vehicles in combined domestic wholesales and exports in November 2015, compared to 12,762 vehicles a year before. Domestic sales of Ford India rose 55% to 8,773 units from 5,661 units in November last year, while the exports grew 18.5% y-o-y to 8,416 units. 

“Our product led transformation strategy is paying dividends as Ford has outpaced the industry growth yet again. Ford’s stunning new product portfolio  continues to find resonance with Indian customers,” said Anurag Mehrotra, Executive Director, Marketing, Sales and Service at Ford India.

Led by the robust initial demand for Kwid, Renault India saw 144.3% increase in domestic sales to 7,819 units in November 2015 from 3,201 units in November 2014. 

Sumit Sawhney, Country CEO and Managing Director, Renault India Operations, said, “The growing acceptance by first-time buyers indicates that the Kwid is truly an aspirational product, offering an outstanding value proposition.”

The carmaker intends to expand its sales and service network reach in India from 190 currently to 240 facilities by the end of next year, which includes expanding its presence in existing and new markets in urban, semi-urban and rural India.

2-Wheeler Sales Muted After Diwali

The two-wheeler sales flattered to deceive, losing steam midway in November 2015 after Dhanteras and Diwali. Total domestic sales of two-wheelers during November stood at 1,320,561 units, reflecting a paltry 1.5% growth year-on-year. Though scooters continued to increase their share in the two-wheeler market, the segment saw its sales growth taper off, registering just 2.5% uptick in domestic sales at 396,024 units in November 2015 vis-à-vis 386,547 units during the corresponding month in 2014.

The two-wheeler market leader Hero MotoCorp sold 538,180 units in the Indian market during November 2015, up 3.30% over 521,001 units in November 2014.

Honda Motorcycle and Scooter India (HMSI) posted domestic sales of 311,946 units in November 2015, which reflected a negative growth of 11.8%  y-o-y.

Bajaj Auto clocked a healthy 19.6% rise in domestic sales of two-wheelers to 152,663 units in November 2015 from 127,649 units a year earlier. On the other hand, Bajaj Auto’s two-wheeler exports witnessed a 12.0% drop y-o-y to 118,223 units during the month.

With domestic two-wheeler sales tally of 190,490 units in November 2015, TVS Motor recorded a growth of 6.2%, compared to 179,453 units in November last year.

India Yamaha Motors, which had been clocking consistently decent growth in the recent past, slipped to negative territory, its domestic two-wheeler sales de-growing by 4.4% y-o-y to 42,718 units in November 2015.

Royal Enfield, however, stayed in the fast lane, selling 40,312 units in domestic market during November 2015, which marked a whopping 48.2% increase over 27,198 units a year ago.

Commercial Vehicle Sales Maintain Buoyancy

The mood in the CV market, particularly in medium & heavy commercial vehicle (M&HCV) segment, remained buoyant. Commercial vehicles registered overall domestic sales of 51,766 units in November 2015 to clock 8.6% growth over the November 2014 sales figure of 47,686 units. M&HCVs stayed on course with domestic sales volume of 20,145 units – 24.8% increase y-o-y. Importantly, domestic sales of LCVs at 31,621 units were in positive territory, albeit just scraping through with a measly 0.3% rise.

Tata Motors’ total sales of CVs at 24,875 units in the Indian market during November 2015 were lower by 2.3% (November 2014: 25,459 units). Tata M&HCVs witnessed a robust growth of 21.9% with domestic sales increasing to 11,524 units from 9,452 units in November 2014.  LCV sales remained in negative terrain, declining by 16.6% y-o-y to 13,351 units.

Ashok Leyland continued in overdrive, mustering a growth of 23.6% in domestic sales that stood at 7,979 units in November 2015 vis-à-vis 6,457 units a year ago. 

Mahindra & Mahindra (M&M) clocked a healthy growth of 17.3% in domestic CV sales that added up to 14,801 units in November 2015, as against 12,622 units in November 2014.

VE Commercial Vehicles sold 2,905 units in the domestic market, registering a growth of 30.1% over 2,233 units a year ago. 

Recent orders of the Supreme Court banning  registration of bigger SUVs and cars, propelled by diesel, in NCR up to 31st March 2016 has caused apprehensions in the market and may dampen the mood. However, the market remains resilient as a result of steadily improving economy, which augurs well for the months to come.

 

 

 

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