Auto Sales Stay on Course in February

Auto Sales Stay on Course in February

2-Wheeler Segment Shows Sign of Slowing Down

Auto Sales in February continued on positive growth curve. While passenger car and commercial vehicle segments came up with perky sales, 2-wheeler sales performance has started showing signs of fatigue after posting healthy growth numbers month after month in the last six years. In the case of passenger cars, the low base of February last year, when the people had kept their purchases on hold in anticipation of reduction in excise duty on passenger cars, also contributed in making their growth look robust.

The country's car market leader, Maruti Udyog Limited posted domestic sales of 59,095 vehicles in February 2007, a growth of 61.6 per cent over the corresponding month last year. During the month, the company exported 3,904 units taking the total sales in February 2007 to 62,999 units. The company's total sales in February 2006 were 41,095 vehicles, including export of 4,487 units.

During the month, Maruti's volume in the domestic A2 segment comprising Alto, Wagon-R, Zen and Swift grew by 79.6 per cent and in the C Segment (Omni & Versa) by 97.8 per cent compared to sales in February 2006. The sales of A3 segment (Esteem & Baleno) and A1 segment (Maruti 800), however, continued to slide.

Hyundai Motor India Ltd (HMIL), the country's second largest car manufacturer, recorded phenomenal growth in the month of February 2007, as it registered a 74% increase in its domestic vehicle sales over February 2006. The car manufacturer sold 15,459 units in the domestic market and exported 9,567 units in February 2007.

The flagship model Santro saw a growth of 118% as it recorded a sale of 11,811 units as compared to 5,407 units in February 2006. Also on the exports front, Santro saw an increase of 12.7% from 8,484 units in February 2006 to 9,559 units in February 2007.

HMIL's segment-wise sales in the month of February 2007 are as follows: A1 Segment - 22, 223 units; A2 Segment - 2,683 units; A3 Segment - 48 units; A4 Segment - 45 units; and SUV Segment - 27 units

Honda Siel Cars India (HSCI), registered a remarkable growth of 60% in sales during the month of February 2007. The company's sales volume added up to 3,521 cars during February 2007, which incidentally is highest ever, as against 2,195 cars sold in February 2006.

The cumulative sales (YTD) of HSCI at 52,838 units also witnessed an impressive growth of 44% over sales figure of 36,607 units during the corresponding period of FY 2005-06.

Ford India witnessed a record sale of 3856 units in February 2007, registering a 27.5% year-on-year growth. Ford India had sold 3023 cars in February 2006.

General Motors India clocked healthy 81% growth with sales figure of 3,087 units in February 2007, as against 1,709 units in the corresponding month last year. The February 2007 sales comprise of 1801 units of Chevrolet Tavera, 1,085 units of Chevrolet Aveo / U-VA and 201 units of Chevrolet Optra.

Mahindra & Mahindra also came up with a good showing clocking sales of 13,746 vehicles, including exports, in February and witnessing a healthy growth of 19.2%. Domestic vehicle sales during the month of February were up 17.6%. The Scorpio sales at 2,637units, recorded a growth of 14% y-o-y.

Cumulative vehicle sales of M&M, including exports, during April-February (FY07) grew by 18.5% to 157,606 units from 133,024 units during the corresponding period last fiscal.

Tata Motors Limited reported a total sale of 53,707 vehicles (including exports) for the month of February 2007, a growth of 19% over 45,113 vehicles sold in February last year. Cumulative sales at 516,599 units grew by 30%.

TML's Passenger Vehicle Business clocked sales volume of 21,322 vehicles in the domestic market in February 2007, an increase of 19% over February 2006. The Indica saw its sales growing by 19% to 12,580 units, while the Indigo family registered sales of 3,436 units, a decline of 6% y-o-y. The new Indigo XL has been well received in the market and is adding good numbers to the sales volume of the Indigo family.

The Sumo and Safari accounted for 5,306 units of sales, representing a growth of 41% over February 2006; Safari sales at 2,009 units grew by 258%. The company's cumulative sales of passenger vehicles in the domestic market during the current financial year up to February 2007 aggregated 201,133 units, up 21% over the corresponding period previous year.

TML's sales of commercial vehicles in February 2007 in the domestic market aggregated 27,859 units, an increase of 22% over 22,885 vehicles sold in February 2006. M&HCV sales were up 19% at 16,306 units, LCVs notched up a growth of 25% with a sales tally of 11,553 units.

The company's exports aggregating 4,526 units in February 2007 rose 6% from 4,257 units in February 2006. The cumulative export figure of 47,013 units in the current financial year represents a 7% growth y-o-y.

Ashok Leyland's domestic sales climbed up steeply by 33% to 7,353 vehicles (5,517 vehicles in February 2006); exports were up 31% to 683 units (521 units in February 2006). Total vehicle sales (including exports) at 8,036 units increased by 33% in February 2007 from 6,038 units in February 2006.

Cumulative sales of Ashok Leyland rose 41% y-o-y, to 74,657 vehicles in the current fiscal. While domestic sales adding up to 69,140 units grew by 42%, exports at 5,517 units were up 26% y-o-y during April 2006 to February 2007.

Hero Honda Motors Ltd (HHML) shored up its position as an undisputed leader in the two-wheeler market, clocking sales volume of 280,515 units in February 2007 vis-à-vis 250,695 units in February 2006. This represents a growth of 11% y-o-y. Cumulative sales of HHML up to February 2007 in the current financial year soared to 3,058,841 units from 2,728,439 units in the corresponding period last fiscal.

Bajaj Auto dished out somewhat lacklustre performance in the domestic market for the second consecutive month. BAL clocked 2-wheeler sales of 174,220 units (including exports) in February 2007 as against 179,880 units in February last year. However, the company's exports continued to witness robust growth. The exports of 2 & 3-wheelers totaled 38,228 units in February 2007, recording a growth of 46% over the export figure of 26,237 units in February 2006.

BAL's 3-wheeler sales at 27,992 units (25,896 units) continued to be steady with export accounting for a significant share thereof.

TVS Motor Company recorded a growth of 10% by clocking 120,110 units of two wheeler sales in February 2007 compared to 108,923 units in February last year. The motorcycle sales numbering 70,155 units in February 2007 compared to 66,391 units in February 2006, grew by modest 6%. TVS StaR City continued to perform well especially the top end electric start version.

In scooter segment, different variants of TVS Scooty witnessed a growth of 24% in its sales in February 2007, with a sales count of 19,937 units (16,052 units recorded last year during the same month).

On the export front, TVS stayed on course with export of 8,017 vehicles in February 2007, which represents a growth of 33% y-o-y.

While there is a moderation in the growth of 2-wheelers, continuing excellent performance of the economy, holds out a promising outlook for the auto industry. The industry is headed for a sustained, steady growth in the short and medium terms. Easy availability of finance at competitive rates has played a major part in driving the growth of vehicle sales. Although the interest rates have been hardening for some time now, it should not act as a dampener so long as the finance continues to be available easily.