Auto Industry in the Fast Lane

March'05 turned out to be a good one for the Auto industry, with a growth of 15.61 % over March'04.

The FY 04-05 as a whole witnessed a perky double-digit growth. Passenger vehicle sales (including exports) grew by 19%, commercial vehicle by 26%, 3-wheelers by 6.38% and 2-wheelers by 17% over the previous year. The overall growth was 17% over the previous FY.

Car market leader Maruti Udyog Limited sold 5,36,301 vehicle units during financial year 2004-05, the highest ever annual sale since the company began operations over 21 years ago. This annual sale figure includes exports of 48,899 units. Maruti's annual sale in 2004-05 represents a growth of 13.6 per cent over 2003-04.

Maruti consolidated its leadership in the A2 (premium compact) segment in the domestic market, with Alto growing by over 108 per cent in 2004-05 and emerging as India's largest selling passenger car model. Sales in. the A3 segment, comprising Esteem and Baleno models, grew by 109 per cent during the fiscal year.

During Mar'05, the company sold 54,613 units, including 3,920 units of exports, a highest ever sale in a month by Maruti. Maruti's volume in the domestic market in A2 segment (Alto, WagonR and Zen) at 30,039 units grew by 47 per cent, and in A3 segment (Baleno and Esteem) at 3,529 units, by 141 per cent. But, the C segment (Omni and Versa) recording sales of 5,955 units, saw a drop of 1.7 per cent, vis-a-vis Mar'04. Maruti 800 sales at 10,252 units as against 15,540 units in March a year earlier, continued to slide.

 
Hyundai Motor India recorded its highest ever sales of 23,669 units in the month of March, this year, a growth of 23.2% over Mar'04.

In the domestic market too, HMI achieved record-breaking sales of 16,315 units, a growth of 18.3% over Mar'04. Model-wise break-up of sales is as follows: Santro: 11,833 units,

Getz: 1,601 units, Accent: 2,525 units, Elantra: 220 units, Sonata: 86 units and Terracan: 50 units. Exports for the month stood at 7,354 units, growing by 36% over the corresponding month in 2004.

In the FY'05, HMI posted cumulative sales of 2,24,243 cars, achieving a growth of over 30% y-o-y.

Exports saw a staggering growth of 95% in the FY 04-05 over FY 03-04, with a sale of 82,093 cars. In the domestic market, HMI sold 1,42,150 cars, a growth of 9.5%.

General Motors India sold 3,516 cars in March, its highest ever monthly tally since inception. This works out to a 35% growth over corresponding month last year.

March sales numbers included Chevrolet Tavera - 1,905 units, Chevrolet Optra - 1,101 units and Opel Corsa - 506 units. Within 10 months of its launch, Chevrolet Tavera has notched sales of 13,450 units.

Honda Siel Cars India, sold record 5,154 units during March 2005, clearly exceeding the milestone of 5,000 units in the premium segment. March 2005 sales are up by a significant 60% as compared with March 2004.

March 2005 also saw the company register the highest-ever sales for both City and Accord. Honda City touched a new high of 4,436 units during the month, higher than the previous highest sales of 3,204 units achieved in January 2005. Honda Accord, the luxury sedan, also sold an all-time high of 401 units during the month, while Honda CR-V achieved sales of 317 units.

The cumulative sales of HSCI for the year also registered an increase of 73%. The company sold a total of 37,480 cars during the year, a quantum jump from 21,703 cars in the previous FY (2003-04). City witnessed a sales growth of 78%, while the Accord and the CR-V further strengthened their position by recording a growth of 46% and 37% respectively, during the FY'05.

Mahindra & Mahindra sold 14,629 units (including 604 units of exports) in Mar'05, up 24% over 11,793 units in Mar'04.

Tata Motors recorded a total sale of 3,99,566 vehicles (including exports) for the fiscal year 2004-05, a growth of 27.2% over 3,14,258 vehicles sold in the last year. Total sales for the month of Mar'05 were 44,433 units, an increase of 28% over 34,725 units sold in Mar'04.

The company recorded its best month ever with sales of 19,995 passenger vehicles in Mar'05 - a growth of 32.7% over Mar'04. The fiscal year ended with a total sale of 1,79,076 units - also the highest ever, with a growth of 27.9%.

Indica registered its highest ever sales in a month, in March, breaching the 11,000 sale mark for the first time with a sale of 11,056 units. It also crossed the 1-lakh-sale mark in a year for the first time. At 1,05,521 units for the fiscal, the Indica emerged as the largest selling compact car in the Rs. 3-5 lakh price category. The Indigo family also registered its highest ever sales in any month with a sale of 4,584 units in March - crossing the 4000 sale mark for the first time in any month. Cumulative sales for the Indigo family in its second FY climbed to 39,306 vehicles - a growth of 40.5%. The Indigo sedan emerged as the largest selling sedan for the year not only in the entry mid-size segment, but also across all segments of the industry. In the UV segment, the Sumo & the Safari registered a sale of 4,355 units, in March. Cumulative sales for the fiscal were the highest in the last 7 years and added up to 34,249 units - a growth of 7.5%.

The company sold 20,474 commercial vehicles in March'05, an increase of 17.1% over 17,792 vehicles sold in March last year. The company reported cumulative sales of 1,89,994 vehicles in the domestic market during the fiscal, an increase of 24.8% over 1,52,195 vehicles sold last fiscal.

Exports for the month of Mar '05 were 3,964 units, an increase of 112.8% over 1,863 vehicles exported in March last year. Cumulative exports for the year 2004-05 at 30,496 vehicles, grew 38.3% over 22,046 vehicles exported last year.

Ashok Leyland clocked sales of 7,432 units in Mar'05 recording a growth of 19.87%. Boosted by higher production and sales in the last quarter, an all-time high sales volume of 54,740 vehicles was reported for the year 2004-05, which is 12.5% more than last year's sale of 48,654 vehicles.

Eicher Motors' overall sales in Mar'05 (including exports) grew by 45% at 3,439 units as against 2,377 units in Mar'04. The FY 04-05 saw a healthy growth of 48% with sales of 21,709 units vis-a-vis 14,665 units in the previous year.

Hero Honda is cruising ahead in top gear. The company closed the FY 2004-05 with an incredible 26,21,400 motorcycles, an impressive jump of 27% over the previous FY. The company had sold a total of 20,70,157 motorcycles in 2003-04. The year-on-year growth registered by the company is extremely significant considering its extra-ordinarily huge volume base.

During the month of Mar'05, the company sold impressive 2,31,593 units translating into a rise of 21 % over Mar'04 (1,92,181 units). Hero Honda sold in excess of 2 lakh plus units during every single month beginning Oct'04.

The company like in the past continues to enjoy a lion's share of the motorcycle market. The company's market share for the period Apr-Feb'05 stands at 50% in motorcycles. The company had ended the FY 2003-04 with a 48% market share in motorcycles. The company's market share in the total two-wheeler market for the same period stands at 40%.

The company increased its exports by 63%, shipping out 64,015 bikes in the FY 04-05.

Bajaj Auto's motorcycle sales at 1,34,670 units grew 42.9% over March 2004, double the estimated industry growth of about 21% and representing a market share of 28.8% v/s 24.5% in Mar'04. The total 2-wheeler sales at 1,44,776 were up 22% while the 3-wheeler sales at 18,754 units, saw a decline of 6.9% in Mar'05 as compared to Mar'04.

Bajaj Auto's 2 & 3 wheeler sales crossed 1.82 million units in FY 04-05 - an all time high. Bajaj motorcycle sales leapfrogged at a scorching pace of 41.6%.

Exports recorded 26% growth, maintaining No.1 position in motorcycle, 2-wheeler, and 3-wheeler exports.

TVS Motor Company's total two wheeler sales in Mar'05 stood at 1,06,218 units compared to 1,00,591 units in Mar'04.

Motorcycle sales in March 2005 stood at 64,273 units as against 62,060 units in Mar'04 - a 4% increase.

The company's scooterette sales at 18,135 units in Mar'05 vis-a-vis 15,512 units in Mar'04 recorded a growth of 17%.

The moped sales clocked 23,810 units in March 2005 compared to 23,019 units in the same period last year. TVS Motor Company continues to maintain its market leadership in this segment.

TVS Motor Company closed the financial year 2004-05 by clocking sales of 11,67,550 units vis-a-vis 11,14,861 units recorded in the financial year 2003-04. This is the third consecutive year that the company has crossed over one million two-wheelers sales mark.

On the export front, TVS Motor Company exported 6,332 units in Mar'05 reflecting a growth of 101% vis-a-vis Mar'04.

The company sold 6,79,536 motorcycles during 2004-05 compared to 7,06,558 motorcycles in 2003-04, recording a decline of 3.82%.

The scooterette sales recorded 2,24,621 units compared to 1,89,238 units last year, registering 19% growth. A total of 2,63,393 mopeds were sold during the year compared to 2,51,065 the previous year.

TVS Motor Company recorded the highest ever export sales by notching up 49,060 units, a 75% increase over last year.

Given that strong economic fundamentals, barring uncertainty on oil price front, are in place, the industry should be able to post a double-digit growth in the year 2005-06 as well.