Passenger vehicle sales find firm footing in July

While Maruti Suzuki reported sales growth of 22.5%, Hyundai recorded an increase of 24.7%

Passenger vehicle sales in July suggest a recovery in demand is gaining strength. During the month, new launches helped companies in the segment report high growth. Market leaders Maruti Suzuki and Hyundai reported annual sales growth of 22.5 per cent and 24.7 per cent, respectively.

Four of the top five companies have recorded volume growth compared to a year earlier.

Based on the sales numbers of seven automobile makers, volumes in the sector are estimated to have grown 17 per cent compared to the year-ago period. Passenger vehicle sales had increased 6.17 per cent in the quarter ended June this year.

Ford, General Motors, Nissan and Renault did not announce sales data for July till the time of going to print.

Maruti Suzuki, India’s largest passenger vehicle manufacturer, reported growth across segments, especially in the mini and compact categories. This was the company’s second-highest monthly sales growth this financial year. Maruti had reported growth of 27 per cent in April and 13 per cent in May. In June, however, sales growth had softened to 1.8 per cent. The company’s sales of 110,405 units in July were the highest since March 2012.

 

Hyundai, India’s second-largest automobile maker, saw one of its highest monthly sales growth in recent times, helped by 6,500 dispatches of the Creta, its new sports utility vehicle. “Hyundai’s new-age product portfolio, led by the Creta, sustained the growth momentum. The tremendous response for Creta, i20 Active and Elite i20 showcases customers’ increasing preference for game-changer products,” said Rakesh Srivastava, senior vice-president (sales and marketing), Hyundai.

Auto sales

 

Honda, the Indian subsidiary of the Japanese automaker, reported growth of 18.45 per cent in domestic sales in July, helped by the recently launched edition of the Jazz. At 6,676 units, Jazz was Honda’s largest-selling vehicle in July, ahead of its popular sedan City (5,180 units).

Sales of Tata Motors’ passenger vehicles increased 13 per cent, though sales of the company’s utility vehicles declined by a sharp 24 per cent. Growth in sales of passenger vehicles was driven by the Zest, Bolt and GenX Nano. “Growth is not all pervasive in July but double-digit growth for the industry is a good sign. Fears of a deficit monsoon appear to be receding and we expect a near-normal monsoon, which will support the festive season demand in rural areas,” said Mayank Pareek, president (passenger vehicle business), Tata Motors.

Toyota Kirloskar, which has not launched any new product this year, saw its sales increase about a per cent in July, while Volkswagen reported an 18 per cent jump in July sales, helped by the Polo and the new Vento.     

Sales of Mahindra & Mahindra, which has a portfolio dominated by utility vehicles, remained in negative territory. The declining trend in recent months continued in July, with a sales decline of 12.8 per cent. Pravin Shah, president and chief executive (automotive) at M&M, said, “We believe the launch of some exciting new products will help turn the tide. In addition, with the advent of a good monsoon till date and a reduction in fuel prices, we expect the sentiment to improve.”

Abdul Majeed, partner and national automotive leader, PwC, said original equipment manufacturers with good portfolios in the small car segment and good penetration in the rural market had grown significantly. “A good monsoon across large parts of the country, a cut in fuel prices, the central bank’s coming monetary policy review, new launches and festive season demand could well help the Indian automobile industry grow this financial year.”