Onset of festive season brings marginal sales growth in auto sector


New Delhi/Mumbai, Oct 1 (IANS): The onset of festive season did not bring any cheer for the automobile manufacturers as most reported mixed sales results for last month.

The industry is suffering from high fuel and interest costs coupled with a slow down in the economy and negative sentiment due lack of industrial and mining activity.

Sales of India's largest passenger car manufacturer Maruti Suzuki was marginally up at 4.6 percent in total sales, including exports, for September at 109,742 units.

The company sold 104,964 units in September 2013.

The company's domestic sales zoomed by 9.8 percent to 99,290 units during the month under review as compared to 90,399 units sold in the corresponding month of last year.

However, Maruti Suzuki exported 10,452 units last month, which was a decline of 28.2 percent from 14,565 units sold overseas during the corresponding month of 2013.

Chennai-based automobile manufacturer Hyundai reported a marginal increase in its sales which stood at 51,471 units from an off-take of 51,417 units in the corresponding month of last year.

Hyundai's domestic sales were up 14.5 percent at 35,041 units from 30,601 units sold in September 2013.

However, exports declined by 21.1 percent at 16,430 units from 20,816 units shipped out in the corresponding month of last year.

"In this festive season, we are seeing a significant increase in first time buyers and exchange buyers which is very encouraging as it will accelerate the positive momentum already being experienced in the last few months," Rakesh Srivastava, senior vice president, Hyundai India.

Other major players in the Indian auto market, Tata Motors and Mahindra & Mahindra (M&M) too reported a mixed sales result.

Tata Motors' total sales, including exports, in the month under review fell by 8.47 percent at 46,118 units last months from an off-take of 50,387 units in the corresponding month of 2013.

The company's domestic sales including commercial and passenger vehicles in the month under review too decline. The off-take fell by 11 percent at 40,874 units from 45,958 units sales in September 2013.

The company's exports during the month under review grew by 18 percent and stood at 5,244 units from 4,429 vehicles shipped-out during the corresponding month of 2013.

M&M's off-take last month was up 3.7 percent at 44,911 units from at 43,289 units in the corresponding month of last year.

However, the company's exports were down eight percent at 2,503 units from 2,715 units being shipped-off in the corresponding period 2013.

"The sales numbers for September have been encouraging and we are glad that the automotive industry is turning the bend. We expect the ensuing festive season to bring in some much needed cheer with a slew of new launches from manufacturers," said Pravin Shah, chief executive automotive division, Mahindra and Mahindra.

Japanese-Indian car joint venture Toyota Kirloskar Motor closed last month with a total sales of 12,552 units up four percent from 12,015 units sold in September 2013.

Other Japanese automobile major Honda's sales during the month under review grew by 45 percent at 15,015 units from 10,354 units sold in the corresponding month last year

“We continue to perform strongly with strong demand for all our models during this festival period. Our top performer Honda City successfully resumed its production during September 2014 and in coming months we will be able to ensure better availability and timely deliveries to fulfill the huge demand,” said Jnaneswar Sen, senior vice president- marketing and sales, Honda Cars India.

Two- and three-wheeler manufacturer TVS Motor Company closed last month with 27 percent sales growth as it sold 250,835 units last month, up from 189,609 units sold in September 2013.

Suzuki Motorcycle India too logged healthy sales of about 7.35 percent last month which stood at 44,873 units in September 2014 as opposed to 41,799 units sold in the corresponding month last year.

Bajaj Auto reported a sales growth of nine percent last month at 399,450 units from an off-take of 367,815 units sold in September 2013.

Hero MotoCorp reported a 30 percent growth of 600,000 units in September 2014 sold 468,670 units in the corresponding month 2013.

  

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Title: Onset of festive season brings marginal sales growth in auto sector



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