Auto Industry in Top Gear

Auto industry is moving ahead at a breakneck speed recording double-digit growth across all segments. Sales in the first quarter of FY 2006-07 have witnessed a 20% growth over Q1 FY 05-06.

Hyundai Motor India (HMI) achieved a spectacular growth of 56.2% in the domestic market in the month of June 2006, over June 2005, selling 17,032 vehicles.

Hyundai Motor India's cumulative sales during the month were 27,251 units - an overall growth of 39.6% over June 2005. Sales in the overseas market in June stood at 10,219 units, up 18.6% over the same month previous year.

Segment-wise cumulative sales of Hyundai in June 2006 is as follows: A2 Segment - 22,567 units, A3 Segment - 4404 units, A4 Segment - 212 units, A5 Segment - 25 units, and SUV Segment - 43 units.

Meanwhile, HMI has increased the prices of all its models - Santro, Getz, Accent, Elantra, Sonata, and Tucson citing a variety of cost push factors like surge in freight costs and raw material. The price increase came into effect from July 12, 2006.

Car market leader Maruti Udyog also reported a healthy 17.5% increase in domestic sales at 44,626 units during June 2006 as compared to 37,995 units in June last year. The total sales grew 17% to 48,425 units during the month vis-à-vis 41,390 units in June 2005.

Sales in the domestic A2 segment (Alto, WagonR, Zen and Swift) grew 10.2% to 27,228 units as against 24,703 units in June 2005, while sales in the A3 segment (Baleno and Esteem) rose by 22.3% to 2,680 units from 2,191 units sold in June last year. The sales of Maruti's flagship model, Maruti 800 also grew by 22.1 % in the month of June 2006.

 
Exports stood at 3,799 units in June this year, up 11.9% from 3,395 units exported in the same month during 2005.

General Motors India witnessed a hefty growth in June 2006 as compared to the same month last year. The global auto major sold 3,346 units in June 2006 as against 2,183 cars in June 2005 to record a growth of 53% in monthly sales. The June 2006 sales comprise 1,961 units of Chevrolet Tavera, 379 units of Chevrolet Optra and 1,006 units of Chevrolet Aveo.

The Chevrolet brand of vehicles has recorded a year-on-year growth of 79%. The company also launched India's first premium sports hatchback - The Chevrolet SRV in June 2006.

Honda Siel Cars India sold 3,078 vehicles in June 2006 vis-à-vis 3,834 units in June 2005, witnessing a 20% decline in sales.

Country's top utility vehicle maker Mahindra & Mahindra vehicle sales at 11,709 units in June 2006 saw a 17% growth in sales volume from 10,036 units in June 2005.

Domestic auto sales of M&M, including utility vehicles, light commercial vehicles and three-wheelers, climbed up by 14% to 11,178 units from 9,763 units in the same month last year. Exports rose 95% to 531 units from 273 units.

Tata Motors reported total sales volume of 45,223 vehicles (including exports) in June 2006, a jump of 37% over 33,018 vehicles sold in June last year.

In June 2006, Passenger Vehicle Business posted an increase of 27.8% to 18,463 units in the domestic market over June 2005. Hatchback model Indica sold 12,271 units, clocking an impressive growth of 41 % y-o-y. Indigo sedan registered sales of 2,885 units, a marginal decline of 1.7% y-o-y. The Sumo and Safari accounted for sales of 3,307 units, a growth of 17.5% over June 2005. The new Safari range launched in June 2006 enabled the model to cross the 1,000 sales mark in a month for the first time, at 1,011 units.

The company's sales of commercial vehicles in June 2006 in the domestic market were 21,565 units, which translates into 38.9% growth over 15,530 vehicles sold in June last year. M&HCV sales stood at 11,808 units, witnessing a growth of 23.3% while LCV sales were 9,757 units, a substantial 63.8% jump over June 2005. The monthly sales of the newly launched Ace crossed the 5,000 sales mark for the first time.

Exports moved up by a whopping 71 % to 5,195 units from 3,037 units a year earlier.

Eicher Motors' sales aggregated 2,235 units (including 202 units of exports) in June 2006 against 1,827 units (including 163 units of exports) in June 2005, reflecting a growth of 22%.

Ashok Leyland's sales graph notched up a growth of 22%, clocking 6,397 units (including 646 units of exports) in June 2006 as against 5,243 units (including 340 units of exports) in June 2005.

Hero Honda's June 2006 sales marked an impressive growth of 23.26% over June last year. The company sold 2,78,660 units in June 2006 vis-à-vis 2,26,073 units in June 2005.

During the month, Hero Honda launched Glamour FI - India's first Fuel Injection motorcycle. The new technology eliminates the need for a carburetor, offers the most comfortable drive and the lowest emissions, in addition to a host of other features, which is now available for the first time to Indian two-wheeler riders.

Bajaj Auto saw a leap of 33% in its June 2006 sales, clocking 2,13,918 units as against 161,282 units in June 2005. The company reported a 40% increase in motorcycle sales in June at 1,83,549 units (1,30,710 units).

The total two-wheeler sales stood at 188,231 units, up 33% from 141,316 units sold in June 2005. The three-wheeler sales in June 2006 rose 29% to 25,687 units from 19,966 units in June 2005.

Exports more than doubled to 34,369 units in June from 15,946 units in the same month a year ago.

The 24% growth in motorcycles boosted the overall two-wheeler sales of TVS Motor Company in June 2006 to 126,679 units compared to 108,111 units during June 2005, translating into a growth of 17%.

The motorcycles clocked 74,683 units compared with 60,170 units of motorcycles sold in June 2005, witnessing a growth of 24%. This is the third successive month in the current financial year that motorcycles sales of TVS Motor are up by more than 20%.

During June 2006, strong performances by TVS StaR in the entry-level segment and Apache in the premium segment helped boost the overall growth in motorcycle segment. Apache continued to be on a high growth curve and in a short span of its launch has become the number two brand in the premium segment. The value addition exercise undertaken for StaR City incorporating premium features has helped differentiate the brand from its peers. The mag wheel version of the motorcycle has been well received by the customers.

TVS Scooty continues to be the market leader in the sub-100cc scooter segment recording sales volume of 25,227 units in June 2006 compared to 22,829 units in June 2005 and notching up a growth of 11%.

On the export front, TVS Motor Company's exports reached a new milestone by crossing the 10,000 mark. The company exported 10,220 units, it's highest ever, in June 2006 recording a growth of 36% compared with June 2005.

The growth rate, of course, is impressive. However, viewed against the backdrop of sluggish sales in the first quarters of 2005 due to confusion and delay in introducing vehicles compliant with new, stringent emission standards that came into effect from 1st April 2005, particularly in the case of diesel vehicles, such spectacular growth rates might not be sustained in the remainder of FY07. Given the impetus provided by Q1 sales, the double digit growth is very much on card in the current financial year, capping the buoyant sales witnessed in the last 3 years.