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| Double-digit, but uneven, auto sales growth in April |
| BS Reporter / New Delhi May 12, 2009, 00:45 IST |
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 The two-wheeler sector, led by Hero Honda, and car market leader Maruti Suzuki together helped the automobile industry achieve year-to-year sales growth of almost 11 per cent in April at 894,058 units. The spurt has come at a time when most companies say the outlook is tough. Total vehicle sales, according to a report released by the Society of Indian Automobile Manufacturers (Siam) today, grew 10.76 per cent compared with the 807,183 units sold in April 2008.
The passenger vehicle industry grew 4.36 per cent, with car manufacturers selling 135,697 units in April. “This has come on the back of 0.54 per cent growth posted by the utility vehicle segment and the multi-purpose vehicle segment,” said Dilip Chenoy, director-general of Siam.
Sales of two-wheelers grew 13.71 per cent to 700,995 units as against 616,468 units in the same month last year. Hero Honda led the growth charts with an increase of 29 per cent to 363,357 units. Bajaj Auto, however, posted a fall of 23 per cent in motorcycles sales during the period. It sold 107,035 units.
According to S Ramnath, analyst at IDFC SSKI Securities, growth for both passenger vehicles and two-wheelers will primarily come from economic growth. Passenger car majors like Maruti Suzuki and General Motors are banking on good monsoons this year to drive rural consumption.
The share of the rural market’s contribution to Maruti’s total sales currently stands at around 8 per cent and for GM over 20 per cent. The same holds for Hero Honda, whose rural to urban sales mix stands at 40:60.
Sales of three-wheelers, comprising both passenger and goods vehicles, grew just 1.69 per cent to 27,524 units.
“Since the transport needs in rural and semi-urban markets aren’t fully met by public service, the demand for three-wheelers is strong and has contributed to the growth in the segment,” said Rajesh Gupta, head (marketing), Piaggio Vehicles. Sales of commercial vehicles continued to be under pressure and dipped 11.25 per cent during the period. Sales of vehicles in the medium and heavy commercial vehicles segment dipped almost 42 per cent, while sales of light commercial vehicles grew 28 per cent on the back of good demand for models like Tata Motors’ Magic.
“The coming emission norms, which will be implemented in April 2010, will see a surge in sales in the fourth quarter of 2009, because vehicles purchased before the end of the financial year are exempted from complying with the Bharat-IV norms,” said S Ramnath,analyst, IDFC SSKI Securities.
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