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| Festive frenzy drives auto sales |
| BS Reporters / New Delhi/Mumbai Oct 02, 2009, 00:46 IST |
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Increasing festive demand, coupled with favourable interest rates and attractive offers, helped the auto industry post a double-digit growth in September. Even the traditionally slow Shradh period (during which most consumers, especially in the north, do not buy cars) was not able to dampen the spirit, as consumers continued to book vehicles, albeit they took deliveries after the Shradh period concluded, making no dent in overall numbers.
Manufacturers such as Maruti Suzuki, Hyundai Motors, Mahindra & Mahindra, Tata Motors, General Motors, Honda Siel Cars and SkodaAuto managed to comprehensively surpass their total sales posted in the same month last year. However, analysts were quick to point out that the low base of last year also helped the auto giants.
Domestic sales of Maruti Suzuki, India’s biggest car maker, grew by 10.7 per cent to 71,594 units in September, compared with 64,682 posted in the corresponding month a year ago. Robust demand for new models like A-Star and Ritz, as well as other models like Swift and DZire, lifted overall sales. However, demand for the SX4 sedan and the M800 continued to decline.
| CAR-NIVAL |
| Company |
2008 |
2009 |
% chg |
| Maruti Suzuki |
64,682 |
71,594 |
10.68 |
| Hyundai |
22,311 |
27,803 |
24.61 |
| Mahindra & Mahindra |
16,059 |
21,961 |
36.80 |
| Tata Motors |
16,586 |
18,176 |
9.58 |
| General Motors |
5,154 |
7,654 |
48.50 |
| Honda Siel |
3,104 |
5,794 |
86.70 |
| Skoda Auto |
1,213 |
1,854 |
53.00 |
| Mahindra Renault |
1,752 |
510 |
-70.89 |
| Source: Companies |
Maruti Suzuki Chairman R C Bhargava said: “Most consumers had no problems in booking during the Shradh period, while taking delivery after the period. We continued to create inventory and obviously most of the deliveries were bunched up in the last few days of the month.”
Sales of Korean car brand Hyundai Motors India (HMIL) rose by 25 per cent to 27,803 units last month from 22,311 units in the same month last year. Demand was primarily driven by the hatchback range of i10, i20 and Santro models.
HMIL Senior Vice-President (Marketing and Sales) Arvind Saxena said: “Sales for the month of September were promising, as we not only recorded the highest figures in our 11 years of operations but also, this year, the festive season has been encouraging as customers returned to the showroom. We hope this will be the turning point for the automotive industry and if sales remain strong during the coming Diwali, then we can look at double-digit growth figures for the current year.”
Tata Motors, India’s third-biggest car manufacturer, posted a growth of 9.6 per cent at 18,176 units in September, with dispatches of the Nano accounting for 2,524 units. Sales in the same month a year ago stood at 16,586 units. Growth was also posted by the company’s Indica model, where it sold 9,858 units.
“In addition to the festive sales, continuation of the improving car sales comes on the back of new car models that were launched since the end of last year. Maruti’s Ritz and A-Star continue to bring in volumes. Sustained economic growth, PSU banks offering car loans at 8 per cent and the upcoming festival of Diwali will all aid in helping the industry sustain momentum in the second half of the financial year,” Angel Broking’s Senior Analyst Vaishali Jajoo said.
Meanwhile, strong demand for the Xylo (multi-utility vehicle) and Scorpio helped Mahindra & Mahindra, the country’s biggest utility vehicle maker, to post a growth of 36.75 per cent at 21,961 units during September against 16,059 units in the same month last year.
Sales of the Logan sedan, which is jointly manufactured by Mahindra and French partner Renault, fell by 71 per cent to 510 units compared with 1,752 units last year, stated a release from the company.
Similarly, the manufacturer of the Chevrolet badged cars, General Motors, sold a record 7,654 cars and utility vehicles in September this year, which is a 49 per cent rise over the sales achieved for the same month last year. The company says there is brisk demand for its entry compact car, Spark, the sales of which alone grew by 128 per cent, selling 4,706 units last month.
Japanese car giant Honda sold 5,794 cars in September, which is a growth of 87 per cent against same-month sales last year, when its total sales stood at 3,104 units. SkodaAuto India, meanwhile grew by 53 per cent on the back of the good performance of its executive cars, Skoda Laura and Octavia selling 1,854 cars.
Emkay head of research Ajay Parmar said: “All companies reported higher dispatches following the surge in retail demand during the festive days of last month. It is the retail space where the numbers are impressive. The momentum seen in the year so far may see a minor correction in the coming months. However, it won’t be a complete slowdown. Interest rates are not expected to hurt off-takes as consumers nowadays do not mind spending a few extra in their EMIs,” he further added.
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