Festive Frenzy Drives Auto Sales

Festive Frenzy Drives Auto Sales

Feel-good sentiment is back as reflected in the healthy October sales of vehicles. Festive spirit added sparkle to the auto market, driving vehicle sales to a new high.

For a refreshing change, M&HCVs bounced back with a vengeance growing by a whopping 64%. A big surge in the sales of commercial vehicles aided by a record double-digit growth of 33% in passenger vehicles catapulted domestic vehicle sales in October to 1,000,760 units - 15.6% higher than 865,566 units sold in the same month last year.

What made the month of October so special for the industry and retail trade was the fact that all segments notched up double-digit growth. 2 & 3 Wheelers also pitched in with decent sales numbers clocking 10.6% and 20.9% growth respectively in the domestic market.

In addition to growth drivers such as - easy finance availability, soft interest rates, new launches, stabilizing economy and improving consumer sentiment - the low base of last year also contributed to make the growth look impressive and healthy.

Setting the scorching pace, India's car market leader Maruti Suzuki India Limited (MSIL) posted a growth of 32.4% y-o-y, selling a total of 85,415 vehicles (including 13,864 units of exports) in October 2009. The company had sold a total of 64,490 vehicles in October 2008, including 5,363 units in export markets. MSIL's domestic sales at 71,551 units were up 21%, while exports aggregating 13,864 units rose by a staggering 158.5% y-o-y.

Maruti Suzuki saw its domestic sales volume in A2 and A3 segments rise by 18.4% and 62.7%, respectively, as compared to October 2008.

Hyundai Motor India Ltd (HMIL), the country's second largest car manufacturer and the largest passenger car exporter turned in a strong performance in the domestic market with sales of 28,301 units in the month of October 2009. The exports were, however, down by 11.9%.

HMIL's total sales volume (domestic + exports) for October 2009 stood at 51,736 units as against 46,596 units in October 2008 - up 11%. The domestic sales grew by a healthy 41.4% over 20,009 units in October 2008, while the overseas-sales figure came down from 26,587 units recorded a year ago to 23,435 units in October 2009.

The segment-wise cumulative sales in the month of October 2009 are as follows: A2 Segment (Santro, i10, Getz & i20) - 47,407 units; A3 Segment (Accent & Verna) - 4,285 units; and A5 Segment (Sonata Transform) - 44 units.

Commenting on October, 2009 sales, Arvind Saxena, Sr Vice President - Marketing and Sales, Hyundai Motor India Ltd said, "The festive period of the last two months generated strong sales and has given the Indian automobile industry some respite from the sluggish performance of the last few months and now it looks that strong sales during September and October might be the turning point the Indian automotive industry has been waiting for."

Mahindra and Mahindra Ltd, India's biggest maker of utility vehicles, witnessed its overall domestic sales jump 28.2% to 24,538 units in October. M&M's utility vehicles sales rose by a robust 39.4% to 13,114 units in October 2009 from 9,406 units a year ago.

Mahindra and Mahindra (M&M) also clocked a healthy growth of 34% in domestic sales of commercial vehicles at 6,892 units. However, the company's 3-wheeler sales slipped by 3.5% to 5,144 units in October 2009.

Honda Siel Cars India (HSCI) remained on a high growth trajectory selling 6,921 units in the month of October 2009 as against 1,476 units in the same month last year, which translates into an imposing 367% growth.

General Motors India (GMI) carried forward its momentum and strong performance in September to October, clocking a decent growth of 15% in sales y-o-y. GMl logged 7,413 units of sale in October 2009 compared to 6,465 units sold in October 2008. The October 2009 sales comprised of 4,231 units of the Chevrolet Spark, 1,161 units of the Chevrolet Tavera, 599 units of Aveo U-VA, 337 Units of Aveo, 163 units of Chevrolet Optra, 110 units of the Chevrolet Captiva, and 812 units of Chevrolet Cruze.

Ford India also witnessed a robust 112% growth in sales during October 2009, clocking 3,690 units compared to 1,744 units a year ago.

Skoda Auto India recorded a 98% jump in October 2009 sales at 1753 units from the year earlier figure of 887 units.

Tata Motors' total sales (including exports) of commercial and passenger vehicles in October 2009 added up to 53,447 vehicles, a growth of 34.5% over 39,729 vehicles sold in October 2008. The company's total domestic sales for October 2009 stood at 50,552 units, up 40% over 36,168 units sold in October last year.

The sales of Tata commercial vehicles in October 2009 in the domestic market added up to 30,541 units, a 59% growth compared to 19,154 vehicles sold in October last year. LCV sales totalled 18,625 units, a growth of 57%. M&HCV sales stood at 11,916 units, up 63% y-o-y.

Passenger Vehicle Business Unit of Tata Motors registered sales of 20,328 units in the domestic market in October 2009 - an 18.5% increase compared to 17,152 units in October last year, and the highest this fiscal. Sales of Tata cars at 17,557 units were also the highest this fiscal, and grew by 25% over October 2008. The sales of the Tata Nano were 3,018 units, while the Indica range sales aggregated 9,640 units - a growth of 2%. The Indigo range recorded sales of 4,899 units - up 6.1 % over October last year, reversing the decline after seven months, aided by the launch of Indigo Manza. The Sumo/ Safari range accounted for sales of 2,454 units, lower by 16% y-o-y.

Tata Motors' exports totalled 2,852 vehicles in October 2009 lower by 20% compared to 3,561 vehicles exported in October 2008.

Hero Honda Motors Ltd (HHML) for a second consecutive month posted a unflattering growth of 0.5% in October 2009. The company logged cumulative sales (including exports) of 354,156 units in October 2009 as against 352,449 units in October 2008. Domestic sales were flat. Hero Honda's production was severely hit due to strike in its ancillary units.

Honda Motorcycle & Scooter India (HMSI) with total sales tally of 60,067 units in October 2009 was in the negative terrain and witnessed a decline of 38% from of 97,353 units in October 2008. HMSI production was also affected by the strike and labour unrest.

Bajaj Auto's domestic two-wheeler sales soared 73% to 179,404 units in October 2009 from 103,661 units year ago. The company's exports of two-wheelers at 70,570 units in October 2009 stayed on course with a growth of 14% as against exports tally of 61,816 units in October 2008. The cumulative growth of Bajaj two-wheelers worked out to 51 %.

TVS Motor Company posted a 12% growth in October 2009, witnessing total two wheeler sales of 131,029 units against 117,101 units in October 2008. Domestic sales of TVSM at 118,563 two-wheelers in October 2009 compared to 100,088 two-wheelers in October 2008 posted a growth of 18%. Motorcycle sales of TVS were in the negative territory and stood at 56,465 units in October 2009 vis-à-vis 59,217 units recorded in October 2008. So were exports that slid to 12,466 units of two wheelers in October 2009 from 17,013 units in October 2008.

Truck sales that had been on a sticky wicket for over a year started showing signs of revival in July, but the October performance has brought cheers to the policy makers, the industry and the trade, who count it as a key indicator for improved industrial output. This augurs well for the auto market, which can expect the buoyancy to continue for the remainder of the year.