Vehicle Sales Step on Gas

A slew of new, affordable models launched in the past 6-8 months and normal monsoon after two successive drought years have propelled vehicle sales on fast track. The sales in August built on the momentum of previous months. Total domestic sales of motor vehicles, across various segments, stood at 2,010,794 units in August 2016, growing by a healthy 23.7% over 1,625,332 units in the same month last year.


Passenger Vehicles stay on course


Passenger vehicle sales in the Indian market at 258,722 units witnessed 16.7% y-o-y growth in August, thanks to improved market sentiment and hot demand for new models.


Maruti Suzuki India (MSI), the pace-setter of the Indian passenger vehicle market, reported a 12.3% increase in its domestic sales to 119,906 during August 2016 from 106,781 units in the same month last year. Together with exports, the carmaker’s total sales tally was 132,037 units in August 2016, up 12.0% y-o-y. The company’s product-wise sales break-up clearly brings out that the new models are now the driving Maruti’s sales juggernaut. In August, the entry level duo of the Alto and WagonR sold a total of 35,490 units, down 5.8% (August 2015: 37,665), while the quintet of Swift, Ritz, Celerio, Baleno and the Dzire together clocked domestic sales of 45,579 units, up 9.9% y-o-y, with Baleno leading the charge. Ciaz sedan, reported yet another month of sales over 5,000 units, posting 6,214 units of domestic sales in August 2016 and, thereby, growing by a massive 49.5% vis-a-vis 4,156 units in August 2015. The sales performance of company’s utility vehicles was equally impressive. The UV segment comprising of Gypsy, Ertiga, Grand Vitara, S-Cross and Vitara Brezza sold 16,806 units in the domestic market, up 114.5% y-o-y (August 2015: 7,836), with Vitara Brezza contributing 9,554 units. Vitara Brezza and Baleno continue to command a waiting period of six months.


Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker, registered domestic sales of 43,201 units, up 6.7% vis-a-vis 40,505 units in August 2016. The company’s exports grew by 17.0% from 14,102 units a year ago to 16,506 units in August 2016.


Commenting on the August sales, Rakesh Srivastava, Sr VP - Sales & Marketing, HMIL, said, ”Hyundai’s volume of 43,201 units continues to build on the growth momentum with the added multiplier effect with the launch of new Elantra.” 


With domestic sales volume of 18,246 units in August 2016, as compared to 14,198 units in August 2015, UV major Mahindra & Mahindra (M&M) posted a 28.5% uptick in domestic sales of passenger vehicles, including utility vehicles, cars and vans.


Meanwhile, Tata Motors registered a 13.4% growth in domestic sales of its passenger vehicles, including cars, utility vehicles & vans, which added up to 14,580 units in August 2016 as against 12,856 units a year back. Domestic sales of Tata passenger cars at 11,435 units in August 2016 were higher by 16.5% y-o-y, due to strong demand for the recently launched Tiago. Domestic sales of Tata utility vehicles also grew by 16.2% y-o-y to 1,567 units in August 2016. Local sales of the company’s vans were, however, down 6.8% y-o-y to 1,578 units during the month.


Toyota Kirloskar Motor (TKM) sold 12,801 vehicles in the domestic market during August 2016 – up 14.7% y-o-y. The company exported 1,244 units of the Etios series in August 2016, compared to 1,386 units in August 2015.


N Raja, Director and Sr VP - Sales & Marketing, TKM, said: ”We welcome the Supreme Court’s decision on lifting the ban on registration of over 2000cc diesel vehicles in NCR-Delhi. The lifting of the ban has opened the order flow for Innova Crysta diesel vehicles in Delhi. We are doing our best on reducing the waiting period.”


Ford India’s combined domestic wholesales and exports grew by 27.0% to 26,408 vehicles in August 2016 from 20,787 vehicles in August 2015. Exports soared by healthy 35.4% y-o-y to a record 17,860 vehicles in August 2016, compared to the export of 13,189 vehicles a year ago, catapulting Ford India to the top passenger vehicle exporter in India during the month. Domestic wholesales remained stable at 8,548 units during the month, compared to 7,598 units in August last year. Ford also commenced sales of its SUV, Ford Endeavour in Delhi/NCR after the ban on diesel car registration was lifted.
“Our increasing export numbers and strong domestic sales prove that the vehicles we build are true global products that appeal to customers in India and around the world,” said Anurag Mehrotra, ED, Mktg , Sales & Service, Ford India.


Riding on the game-changing Kwid hatchback, Renault India registered its highest ever monthly sales of 12,972 units in August 2016 (August 2015: 1,527). The carmaker recently launched the Kwid 1.0-litre SCe (Smart Control efficiency), which offers an upgrade to a more powerful engine.


Nissan Motor India is also having a good run in the domestic market, thanks to the recently launched RediGo. The carmaker reported domestic sales of 5,918 vehicles in August 2016, up 110.7% y-o-y. The exports, while shrinking by 13.6% y-o-y, were still sizable at 9,232 units during the month.


Domestic sales of Honda Cars India Ltd (HCIL) declined by 10.9% to 13,941 units in August 2016 (August 2015: 15,655 units). The model-wise sales break-up read: City (4,255 units), Amaze (2,488 units), Jazz (3,818 units), Brio (784 units), BR-V (2,229 units), CR-V (77 units), and Mobilio (290 units).


Speaking of the company’s performance, Yoichiro Ueno, President and CEO, HCIL, said, “We have been continuing our sales efforts to streamline our stock levels at the dealerships and are geared up for the upcoming festive season.”


Two-wheeler sales in overdrive


Two-wheelers are seeing sales surge, following the good monsoon rain coverage across the country and consequent improvement in rural sentiment. Total domestic two-wheeler sales shot up by 26.3% to 1,648,883 units in August 2016 from 1,305,348 units a year ago. All two-wheeler majors were on high growth trajectory.


Hero MotoCorp (HMCL), India’s largest two-wheeler manufacturer, saw its domestic sales zoom by 30.5% to 601,241 units in August 2016 from 460,557 units in August last year. To further boost its growing sales and to make most of the high demand during the upcoming festive season, Hero MotoCorp plans to soon roll out upgrades of its three existing motorcycles - 150cc Achiever, 125cc Super Splendor and a 100cc Passion Pro. In an official release, the company said, “Hero MotoCorp will launch 15 new products across segments in its domestic and global markets this fiscal, out of which three motorcycles will be introduced in the domestic market before the festive season.”


Registering its best-ever monthly performance, Honda Motorcycle & Scooter India (HMSI) posted domestic sales of 466,289 units in August 2016, growing by 25.0% y-o-y.  HMSI exports, during the month, grew by 18.2% y-o-y to 26,079 units.


Y S Guleria, Sr VP - Sales & Mktg, HMSI, said, “Adding over 93,000 units (YoY basis), Honda’s total sales and exports reached all-time high in Aug’16. In just 2 months and before schedule, Honda has achieved 100% peak production levels at its second assembly line in Gujarat plant. The new capacity of our fourth plant gives us wings to grow at a faster pace.”


Clocking a growth of 26.7%, Bajaj Auto posted sales of 174,719 units in the Indian two-wheeler market, compared to 137,948 units in August last year.


TVS Motor too recorded an impressive 30.1% jump in domestic sales of its two-wheelers, which aggregated 238,984 units in August 2016, vis-a-vis 183,653 units a year ago. 


Reporting its highest sales for any month, India Yamaha Motor announced a 21.9% growth in domestic two-wheeler sales, with a tally of 74,868 units in August 2016, as against 61,440 units in August 2015.


Royal Enfield stayed in top gear. The company reported domestic sales of 54,735 units in August 2016, marking a growth of 31.6% over 41,600 units in August 2015. 


LCVs keep steady; however, M&HCVs slowing down


While the auto market, overall, looked buoyant, the sales of M&HCVs remained sore point and contracted for the second consecutive month, with replacement demand fizzling out. Domestic sales of M&HCVs at 20,537 units recorded a 10.8% dip. On the other hand, the sales of LCVs in domestic market expanded by 11.2% y-o-y to 32,459 units in August 2016.


The CV market leader, Tata Motors saw domestic sales of its CVs fall by 3.3% y-o-y to 21,886 units in August 2016. While domestic sales of Tata M&HCVs at 9,969 units were down 17.0% y-o-y, that of LCVs rose by 12.4% y-o-y to 11,917 units.
Rival Ashok Leyland also witnessed a 4.3% fall in domestic sales of its CVs, which stood at 9,818 units in August 2016 vis-a-vis 10,255 units in August 2015.


Mahindra & Mahindra posted a 7.4% uptick in CV sales in domestic market from 13,023 units in August 2015 to 13,993 units in August 2016.


Sustaining the growth momentum, VE Commercial Vehicles (VECV) sold 3,450 Eicher branded trucks & buses in the domestic market, which reflected a growth of 14.7% y-o-y.fada


The normal monsoon rains this year and implementation of Seventh Pay Commission recommendations have brought in a marked improvement in consumer sentiment, cheering the auto market. However, the M&HCVs have slipped back to the negative terrain after 15-16 months of spectacular run, which is a cause of concern. Nonetheless, the mood is upbeat ahead of festive season.

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