Auto Sales Sustain Momentum

Auto industry continues to put up a good show with all segments clocking robust double-digit growth in July 2006. The industry grew by a healthy 20.95% over July 2005.

Hyundai Motor India sold a total of 24,615 vehicles in the month of July, comprising 16,209 units in the domestic market and 8,406 units in the overseas market. The domestic sales in July 2006 posted a healthy growth of 50.5% over July 2005.

The segment wise cumulative sales of HMI in July 2006 are: 21,671 units in A2 segment, 2,777 units in A3 segment, 103 units in A4 segment, 30 units in A5 segment and 34 units in SUV segment.

Maruti Udyog Ltd registered a 10.1% increase in domestic sales at 44,653 units in July 2006 as against 40,553 in the same month of the previous year. In all, Maruti Udyog sold 46,408 vehicles in July 2006, a growth of 3.7% over July 2005. Exports of vehicles, however, declined 58.2% to 1,755 vehicles from 4,203 vehicles in the year ago period.

Meanwhile, Maruti Udyog Limited has marginally increased the prices of certain models. The increase varies from 0.17% to 1.47%. The price increase is due to rise in input costs and freight costs that have increased following the rise in oil prices. There is no change in the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol).

 
General Motors India saw its sales numbers go up by 37% to 2,450 units in July 2006 from 1,866 units in July 2005. The July 2006 sales comprise of 1,302 units of Chevrolet Tavera, 309 units of Chevrolet Optra and 839 units of Chevrolet Aveo.

Honda Siel Cars India has received an overwhelming response to its recently launched model - the Honda Civic. In less than a month of its launch, HSCI has already sold 2,441 units of the Civic, replicating the model's global success in India. Of this total figure, 475 units were dispatched to the dealers in June end to begin sales immediately after the launch on 4th July 2006.

Boosted by Civic sales, HSCI registered a growth of 57% in July 2006 clocking sales of 5,936 cars compared to 3,764 cars in July 2005.

Modelwise sales break-up for July 2006: City - 3,199 units; Civic - 1,966 units; Accord - 193 units; CRV - 103 units and Civic in June 2006 - 475 units.

M&M's domestic auto sales in July 2006 zoomed 41% to 12,481 units from 8,830 units a year earlier while the exports increased 5% to 655 units from 624 units.

Tata Motors registered a total sale of 45,056 vehicles (including exports) during the month of July 2006, witnessing a growth of 44.5% over 31,173 vehicles sold in July last year.

The company's passenger vehicle sales at 18,238 units in the domestic market in July 2006 reflected an increase of 40.4% over previous July. The Indica sold 11,941 units, clocking a growth of 62% over July 2005. However, the sales of Indigo declined by 16.5%, to 2,589 units. The Sumo and Safari together logged 3,708 units, posting a strong growth of 46.8% over July 2005, with Safari stealing the thunder by posting its highest ever monthly sale of 1,229 units.

Tata Motors' commercial vehicles sales in July 2006 in the domestic market aggregated 21,534 units (13,957 units), reflecting an increase of 54.3% y-o-y. While M&HCV sales stood at 12,139 units, LCV sales numbered 9,395 units, recording growth of 51.5% and 58%, respectively, compared to the sales in the corresponding month last year.

The company's sales from exports added up to 5,284 vehicles in July 2006 as compared to 4,220 vehicles previous July, achieving a growth of 25.2%. The cumulative exports in the current fiscal at 18,390 units have recorded a 38.3% growth y-o-y.

Total sales of Ashok Leyland were up 22% to 5,231 units (including 261 units of exports) from 4,283 units (including 446 units of exports) in July 2005.

Eicher Motors notched up total vehicle sales of 2,160 units (including 165 units of exports), growing 23% over July 2005 figure of 1,751 units (including 81 units of exports).

Hero Honda Motors Ltd sold 2,35,314 two-wheelers (including exports) during the month of July 2006, as against 2,30,050 units in July last year, settling for a modest growth of 2.3%.

Exports during the month totaled 10,575 units, marking a remarkable growth of 53.26% over exports figure of 6,900 achieved during July 2005.

Hero Honda Pleasure, the company's first scooter sold 6,224 units in July 2006, taking its total tally during the current FY to 28,324 units.

July 2006 also saw Hero Honda's flagship model, Splendor, being honoured as the 'Most Preferred Two-Wheeler Brand in India' by CNBC Awaaz, as part of its 'Consumer Awards 2006'. The results were based on a consumer survey conducted jointly by CNBC Awaaz and AC-Neilson-ORG Marg.

Additionally, Hero Honda also emerged as the top two-wheeler company in the first TNS Global Corporate Social Responsibility Study 2006. The study was based on consumer perception of the automotive sector in terms of its social contribution towards social, environmental and philanthropic activities.

Bajaj Auto's motorcycle sales (including exports) rose by healthy 49% to 171,115 units in July 2006 from 115,216 units year ago and sales of all two-wheelers grew by 37% to 173,158 units from 126,821 units. Three-wheeler sales for the month went up 18.06% to 26,663 units as compared to 22,585 units in July 2005. The company's spectacular performance in the month was aided by the robust export figure of 42,476 units, which grew by a whopping 189%.

TVS Motor Company, buoyed by a 28% growth in its motorcycle sales, recorded total two wheeler sales of 1,21,462 units in July 2006 vis-à-vis 1,01,359 units in July 2005, growing by 20% in the process.

The motorcycle sales in July 2006 were higher at 68,335 units vis-à-vis to 53,215 units year ago due to the growing popularity of Apache and TVS StaR brands across all markets and strong performance of these two products.

In a short period of time, Apache has become the second-largest brand in the premium segment and the company continues to ramp up its production to meet the growing demand. The TVS StaR too has achieved significant growth. During the month, it crossed the cumulative 8,00,000 unit mark.

TVS Scooty sales clocked 25,356 units in July 2006 as against 24,244 units in July 2005. The brand continued its market leadership in the sub-100 cc scooter segment.

TVS Motor Company exported 10,382 units in July 2006, achieving the highest ever export sales in a single month and reflecting a growth of 15% over the same period last year.

Continuing robust sales performance of Indian automotive industry is something to cheer about. However, rising interest rates & input costs and uncertainty over fuel prices continuing to cast its shadow remain constant niggles. In spite of these hiccups, the vehicle sales have stayed on course thanks to the booming Indian economy resulting in the people's rising income levels and aspirations. The initial robust performance in the current year makes sure that the industry is well on its way to achieve a decent growth during the fourth year in succession.