FY 2005-06 Ends on a High Note

Auto Industry sales were at an all time high with most of the companies clocking impressive sales in March 2006. Excise duty cut on small passenger cars, announced in this year's budget, also contributed to this boost in sales. In FY 2005-06, automobile industry ended up clocking a decent 14% growth over FY 2004-05.

Car major Maruti Udyog sold 61,141 vehicles in the domestic market in March 2006, the highest in a month so far. The company sales cruised to 63,196 units (including export of 2,055 units) from 54,613 units (including export of 3,920 units) in March 2005, posting a growth of 15.7%. March saw Maruti register the highest ever-monthly sales of Alto (17,908 units), of WagonR (10,843 units) and of Swift (6,651 units).

MUL sold a record 5,22,664 passenger cars in the domestic market during the year, the highest since inception. In all, the company sold 5,61,822 units (including export of 34,784 units) in 2005-06, an increase of 4.8% over 2004-05 sales. Exports declined by as much as 28.9% to 34,784 units during the period.

 
Growing at a scorching pace, Hyundai Motor India (HMI) registered record-breaking sales of 30,038 units in March 2006. This is the highest ever sales recorded among all the Hyundai Motor Company (HMC) factories outside Korea.

The sales of HMI vehicles including exports in the month of March 2006 increased sharply reaching historical new record levels of 30,038 units, representing an increase of 26.5% over March 2005. Sales in the domestic market achieved a landmark figure of 22,524 units with a growth of 37.5% over the same month in 2005. Exports for the month stood at 7,514 units, growing by 2.1 % vis-à-vis March 2005.

Santro and Accent touched new highs in March 2006 selling 22,800 and 5,052 units, respectively. Segmentwise sales recorded by HMI during the month were: 24,706 units in A2 Segment; 5,052 units in A3 Segment; 196 units in A4 Segment; 46 units in A5 segment and 38 units in SUV Segment.

General Motors India posted a 16% growth in sales in March 2006 at 4,070 units, which includes 1,395 units of the newly launched 'Chevrolet Aveo'. GM India sold 2,155 units of Tavera and 520 units of Optra in March.

Ford India sold 7,630 units in March 2006, a 48.5% jump over 5,136 units sold in March 2005. In FY 2005-06, Ford India sold 28,865 vehicles in the domestic market, a 6% increase over the 27,259 vehicles sold last year.

Honda Siel Cars India (HSCI) registered all-time high sales of 6,120 units in the domestic market during the month, clocking a growth of 19% over March 2005. The CityZX achieved record domestic sales of 5,466 units, an increase of 23% over March 2005. The sales tally for Accord in March 2006 was 507 and for the CRV, 147.

HSCI also closed the FY 2005-06 on an upbeat note, with total sales of 42,727 units in the domestic market - a growth of 14% over the previous financial year.

Mahindra & Mahindra's March sales rose 12.5% to 16,458 units from 14,629 units in the previous corresponding. Domestic sales increased by 11 % to 15,642 units from 14,025 units a year earlier, while exports went up 35% to 816 units from 604 units.

Tata Motors reported a record sale of 454,345 vehicles (including exports) for the fiscal year 2005-06, its highest ever, translating into a growth of 13.7% over 3,99,566 vehicles sold in 2004-05. Total sales (including exports) for the month of March 2006 were 56,406 units, the company's highest ever monthly sales and an increase of 27% over 44,432 units sold in March 2005.

 
Tata Motors' passenger vehicle business witnessed sales of 22,609 vehicles in the domestic market in March 2006, its highest ever monthly sales and an increase of 13.1 % over March last year. The Indica sold 12,989 units, posting an increase of 17.5%. The Indigo range registered sales of 4,666 units, up 1.8%. The Sumo and Safari accounted for sales of 4,954 units, registering a growth of 13.8%. The company's exports at 6,508 vehicles in March 2006 as against 3,964 vehicles in March last year grew by 64.2%. In March 2006, the Indica, the Indigo range and the Safari individually posted their highest ever-monthly sales, while utility vehicles together recorded its highest ever-monthly sale in the last seven years.

The company's sales of commercial vehicles in March 2006 in the domestic market totalled 27,289 units, its highest ever monthly sales and an increase of 33.3% over sales tally of 20,473 vehicles in March last year. M&HCV sales stood at 16,312 units, growing 14.5% over March last year, while LCV sales at 10,977 units, witnessed an impressive increase of 76.3%.

During the year, Tata Motors created new segments by launching India's first mini-truck, the Ace (in May 2005), and the Tata Novus (in December 2005), the first 300 PS HCV from an Indian manufacturer. Both the vehicles, particularly the Ace, have received an encouraging response.

Ashok Leyland's sales soared by 15% in March 2006 and touched 8,548 units against 7,432 units in March 2005. Domestic sales rose by 27% to 8,058 units from 6,352 units a year earlier, while exports fell to 490 units from 1,080 units.

Eicher Motors' sales at 3,103 in March saw a decline of 9.7% vis-à-vis the same month a year ago, while the company's sales for the year ended March 2006 at 23,600 units inched up 2.5% from 23,005 units 2004-05.

Hero Honda, the 'World NO.1' two wheeler manufacturer for the fifth year in a row, has continued the blitzkrieg by recording incredible sales in FY 2005-06. The company's sales crossed the landmark 3-million mark for the first time ever in the Indian two-wheeler industry, adding up to 30,00,751 units for FY 2005-06.

The company recorded sales of 2,72,312 units during the month of March 2006 out of which scooter sales accounted for 7,496 units. The March sales of motorcycles grew by a significant 14.34% to 2,64,816 units from 2,31,593 units in March 2005.

Hero Honda's cumulative sales for motorcycles at 29,81,175 units for the FY 2006 saw a significant growth of 13.72% over 26,21,400 units in the previous year.

During the month of March, the company also announced national launch of 'Pleasure', the company's first gearless scooter in the Indian market. The company has already sold 19,576 units of the scooter since its launch in January 2006.

Bajaj Auto's total sales in the month of March 2006 posted a whopping 30% growth, clocking 2,12,419 units as against 1,63,683 units in March 2005. Exports scaled to 28,998 units vis-à-vis 24,422 units in March 2005 to register a 19% growth. Bajaj Auto's motorcycle market share for the month is estimated at 32.2%. Motorcycle sales in March 2006 jumped to 1, 83,927 units from 1,34,707 units a year earlier, reflecting an astounding growth of 37%.

The performance of Bajaj 3-wheelers continued to be buoyant, selling 24,723 units over 18,822 units in same month last year, which represents a growth rate of 31 %.

Bajaj Auto's total sales in FY 2005-06 leapfrogged by 25%, from 18,26,798 units in FY 2004-05 to 22,79,862 units.

Continuing on a positive growth path, TVS Motor Company's motorcycle sales shot up to 83,896 units from 64,273 units in March 2005, posting a growth of 31%. The good demand for motorcycles boosted the company's two-wheeler sales in March 2006 by 21% to 1,28,857 units compared to 1,06,218 units a year ago.

In scooter segment, the sales of different variants of TVS Scooty at 17,410 units dipped by 4% in March 2006 from 18,135 units in March 2005.

TVS Motor Company closed the financial year 2005-06 with a 19% growth in the sale of motorcycles. The motorcycle sales went up to 8,06,708 units from 6,79,099 units in FY 2004-05. The total two-wheeler sales also witnessed a 15% growth by clocking 13,42,257 units compared to 11,67,016 units recorded in the previous financial year. This represents the highest volumes ever in the history of TVS Motor Company both in motorcycles and in the overall two-wheeler segment.

On the export front too, TVS Motor Company registered a robust growth of 64% in the financial year 2005-06, shipping out 79,733 units compared 48,560 units in the previous year.

The re-Iaunch of popular models with fresh new features added to the significant sales growth in March. A feature-packed new version of TVS StaR City was launched with alloy wheels. Victor GLX too was launched with alloy wheels and fresh new graphics. With the phased launch of TVS Apache in newer markets, TVS Motor Company is hopeful of making further inroads into the motorcycle market in the coming months.

With macroeconomic indicators pointing to a continuation of growth momentum, the Indian automobile in the current financial year is favourably placed to better its performance of the previous year, particularly as the eight per cent cut in excise duty on small cars is likely to bring in more numbers.