Heady October for Auto Industry

Month after month, Indian automotive industry has been going from strength to strength. October was yet another month that saw auto sales soaring higher. All the segments of industry witnessed a double-digit growth during the month. The festival season and comparatively low base of passenger cars in October last year also contributed in fueling the growth.

Car market leader Maruti's domestic sales were up 11% at 55,894 units this October against 50,308 units a year ago. The company's total sales, including exports numbering 4,269 units, stood at 60,163 units in October 2006, recording a growth of 16.7% over 51,543 units last October. During the month, Alto sold a whopping 22,294 units, leading the growth charge of Maruti. This was the highest ever-monthly sale for any model and make in India. Earlier record of highest sales was of Maruti 800 (20,687 in March 2003).

Maruti's domestic sales volume in A2 segment (Alto, Wagon-R, Zen, and Swift) grew by 23.5%; and in C segment (Omni, Versa), by 21.6% during the month compared to sales a year ago. However, the company saw its sales in A1 segment (M-800), MUV segment (Gypsy, Vitara) and A3 segment (Baleno & Esteem) sliding by 30.1%, 42.6% and 11.7%, respectively.

Japanese car manufacturer Honda Siel Cars India sold 5,566 units in October 2006 as against 1,255 units in October 2005. HSCI clocked a phenomenal growth of 343%, riding on the low base as Honda City was in the run out phase last year prior to the launch of City ZX.

The Honda Civic has notched up a cumulative tally of 8,011 units since its launch in July this year. The company's model wise sales break-up for October 2006 is: City - 3,673 units; Civic - 1,726 units; Accord - 165 units; and CRV - 2 units.

South Korean biggie Hyundai, sold a total of 26,110 vehicles in the month of October, comprising 18,603 cars in the domestic market and 7,507 cars in the overseas market and making HMIL not only the largest exporter of passenger cars but also achieving this distinction in the shortest time span. The domestic sales in October 2006 posted a growth of 18% over October 2005.

Ford India's growth graph hit a high of 142% with 3,336 units of sale in October 2006 as compared to 1,376 units in October 2005. Ford India also strengthened its position to second rank for the year 2006 in the Customer Satisfaction Index in the latest study conducted by J D Power Asia Pacific.

 
Skoda Auto India (P) Ltd registered sale of 1,062 cars this October, up 7.27% over the 990 cars sold last October.

Mahindra & Mahindra's Scorpio saw a 4% dip in its sales to 2,947 units in the domestic market, but its exports during the month rose to 469 units from 164 units in October last fiscal.

Overall, M&M's Automotive Sector shored up its position with sales of 17,109 vehicles, including exports, in October registering a growth of 9.1%. Domestic vehicle sales for the month of October were up 6.7%. The growth was propelled mainly by a good showing in the LCV and the three-wheeler segments and exports. 758 units of LCVs were sold October 2006 as opposed to 576 units in October last year. Similarly, three-wheelers sales hit 3,626 units as against 2,332 units in October 2005.

General Motors India grew by 12% to reach 3,153 units of sale in October 2006 as compared to 2,829 units during the corresponding month last year. The October sales comprised 2,011 units of Chevrolet Tavera, 902 units of Chevrolet Aveo and 240 units of Chevrolet Optra.

GM India is expanding its dealership network this year from the present 89 sales points to 110 sales points. Two new parts distribution centres have also been set up this year in Maharashtra and Delhi to supplement existing centres in Gujarat and Tamil Nadu.

Tata Motors clocked a total sale of 43,540 vehicles (including exports) in October 2006, registering a modest growth of 5.6% over 41,219 vehicles sold in October last year.

The Passenger Vehicle business reported a sale of 16,726 vehicles in the domestic market in October 2006, a decrease of 2.8% over October 2005 primarily due to the fire related constraints of the car plant. The Indica sold 10,998 units, registering a growth of 9.1% over October 2005. The Indigo family registered sales of 1,722 units, witnessing a massive decline of 51.3% y-o-y. While the facelifted range launched recently has been well received, supplies to the market have mostly been affected on this range due to the fire in the car plant in September. The Sumo and Safari accounted for sales of 4,006 units, a growth of 11.6% over October 2005. Safari sales at 1,439 units continue to maintain their high growth trajectory since its price repositioning.

The company's sales of commercial vehicles in October 2006 in the domestic market were 23,354 units, reflecting an increase of 18.6% over 19,700 vehicles sold in October last year. M&HCV sales stood at 13,184 units, up 14.4%, while LCV sales were 10,170 units, a growth of 24.3% over October 2005.

The company's exports at 3,460 units in October 2006 declined by 22% compared to 4,433 vehicles in October 2005.

Ashok Leyland's domestic sales in October 2006 jumped 73% to 6,798 units (3,921 vehicles in October 2005). Exports at 457 units were up 27%. Total vehicle sales at 7,255 units witnessed a healthy growth of 69.5% as against 4,281 units in October 2005

Bajaj Auto Ltd continued to leapfrog recording an impressive growth of 22% in motorcycle sales that clocked 251,022 units (including exports) in October 2006 vis-à-vis 205,012 units a year back. 3-wheeler sales aggregating 180,065 units also sustained their growth momentum and rose by 30% compared with the October 2005 figures. Exports at 40,148 units (22,713 units) recorded a whopping 77% growth y-o-y.

TVS Motor Co. continued on its growth path by registering a total two-wheeler sales of 142,325 units in October 2006 compared to 137,886 units a year ago. Motorcycles clocked 92,328 units growing by 8% over October 2005 sales figure of 85,463 units. Cashing in on the festival season, the retail sales of the company's two wheelers in October 2006 recorded an all time high of over 185,000 units.

The overall growth of TVSM in two wheelers was sustained by the continued demand for its motorcycles especially TVS StaR City and TVS Apache. TVS StaR brand crossed the 1-million sales mark since its launch and, with the recent launch of the electric start variant, the demand for the vehicle is expected to grow further. The company's scooterette and moped sales performance witnessed a minor dip.

On export front, TVS Motor Company shipped out 7,232 units in October 2006, recording a growth of 20%.

After witnessing a tad slowdown in the preceding months, Hero Honda Motors Ltd, the world's largest two-wheeler manufacturer, reiterated its undisputed leadership of the Indian two-wheeler industry with record sales of 363,480 units during the month of October 2006.

Hero Honda's sales in October 2006 registered a healthy growth of more than 20 per cent over the corresponding month in the previous year, when the company sold 302,012 units.

After the launch of reincarnated CBZ in its X-treme avtar with new styling and engine, Hero Honda announced the launch of two new variants - the new Glamour and Passion Plus Limited Edition to keep the challenge to its leadership position at bay. The company has already made its intention clear by its aggressive marketing and brand building campaigns.

The other two-wheeler major Yamaha Motor India did not find its fortunes changing much in India with its sales, including exports, virtually stagnating at 33,725 units.

Auto industry is enjoying a good time in terms of both domestic sales and exports. Future outlook is equally bright, when seen in the backdrop of current low motorisation level and the huge market waiting to be tapped. The vibrant domestic market has a positive impact on exports as well.