Off to a Good Start

Auto industry started on an upbeat note in the new financial year registering a healthy 15.29% growth in April 2006 over the corresponding month last year. All the segments-passenger car, commercial vehicle and 2/3-wheelers, notched up good numbers.

Car market leader, Maruti Udyog Limited reported total sales of 43,127 vehicles (including 1,553 units of exports) in April 2006, recording a 12.9% increase over April 2005 sales of 38,190 units (including 1,218 units of exports).

The domestic sales in A2 segment grew by 26.4% and in A3 & C segments by 4.4% over April last year to touch 28,156 units, 2,433 units and 5,050 units, respectively. Maruti 800 continued to slide and saw its sales falling sharply by 16.6%.

Hyundai Motor India (HMI)'s sales tally for the month of April 2006 added up to 25,803 units, up 31 % over 19,694 units in April 2005. Of this figure, 14,961 units were sold in the domestic market and 10,842 units in the overseas market.

The company’s segment-wise cumulative sales in the month of April 2006 are: A2 Segment - 21 ,805 units, A3 Segment - 3,688 units, A4 Segment - 239 units, A5 segment -71 units and SUV Segment - 46 units.

General Motors India saw an impressive growth of 66%, selling 3,662 vehicles in April 2006 as against 2,214 vehicles in April 2005.

The April 2006 sales include 1,787 units of Chevrolet Tavera, 310 units of Chevrolet Optra and 1,595 units of Chevrolet Aveo.

With Aveo joining its product line-up, the Chevrolet brand grew at 82% during April 2006 as compared to the previous corresponding month. Aveo U-VA and Optra SRV are scheduled for launch in the next few months and are part of the largest expansion of GM India's vehicle line-up in the company's history.

Gearing for a major ramp-up, the company's Halol facility in Gujarat is undergoing an expansion drive to enhance its capacity to 85,000 units this year.

Honda Siel Cars India, yet again, came up with a good showing, clocking a growth of 27.30% in April 2006 over April 2005. The company sold a total of 4,551 units in April 2006 as against 3,575 units in the corresponding month during the previous year.

Honda City - the flagship model from HSCI, registered sales of 4,007 units, Honda Accord sold 231 units and the CR-V accounted for 313 units in April 2006.

SkodaAuto India sold 984 units in April 2006, higher by 54% from 639 units sold in April last year. The figure includes 69 units of the Skoda Superb.

India's leading utility vehicle maker Mahindra & Mahindra’s vehicle sales at 11,233 units in April 2006 registered a 6% growth over 10,640 units sold a year earlier.

Domestic sales were up 5% at 10,921 units while exports jumped by 31% to 312 units.

 
Tata Motors’ overall sales in April 2006 climbed up to 36,082 vehicles (including exports) recording a growth of 51 % over the total sales tally of 23,889 clocked last April.

The passenger vehicle business witnessed a total sale of 13,328 vehicles in the domestic market in April 2006, an increase of 4.7% over April 2005. The Indica sold 8,493 units, while the Indigo family registered sales of 2,587 units. Vehicle sales were adversely affected during the month due to labour strife at a key vendor facility. Efforts are underway to ensure recovery. The Sumo and Safari accounted for sales 2,248 units.

The company’s sales of commercial vehicles at 19,182 units in April 2006 soared 129% over 8,368 vehicles sold in April last year. The growth in April 2006 is on a low base of April 2005, which was due to unanticipated difficulties in certification and procurement of some critical parts. M&HCV sales at 11,625 units and LCV sales at 7,557 units grew by an impressive 121.5% and 142.2% respectively, over April 2005.

Overseas sales of 3,572 units in April 2006 saw the exports of Tata Motors going up by 28.3% over export figure of 2,785 recorded in the month of April 2005.

Ashok Leyland registered a robust growth of 47% in April 2006, selling 5,039 vehicles (including 289 units of exports) vis-à-vis 3,422 units (including 251 units of exports) sold in the same month last year.

Eicher Motors' sales in April 2006 aggregated 1,228 units, moving up 4.9% over 1,171 units sold in April 2005. The domestic sales at 1,216 units saw a growth of 8%. Eicher had exported 47 units in April 2005, which dropped to 12 units in April 2006.

Two-Wheeler segment, particularly motorcycle sub-segment continued to outperform other segments of Industry. Hero Honda, the ‘World No.1’ two-wheeler company maintained its undisputed leadership position. The company came up with a reasonably good showing selling 2,50,366 units during April 2006 out of which motorcycles accounted for 2,43,879 units and scooters, 6,487 units. The company reported an overall (including scooters and motorcycles) sales growth of 6.34%as compared with the corresponding month in the previous year.

HHML has clocked an overall cumulative growth of 11.1% during the period January - April 2006 with sales of 10,22,823 two-wheelers.

Bajaj Auto's sales in April 2006 leapfrogged by 29% to 2,12,123 units from April 2005 sales of 1,65,045 units. The company, in the process, came further close to pose a serious challenge to Hero Honda that has been ruling the roost for 5 years.

Bajaj motorcycle sales continued to outscore the industry growth that has been estimated at 21%. The company sold 1,88,518 motorcycles in April 2006, reflecting a growth of 37% over 1,37,858 units sold in April 2005. For the month of April, the market share of the company in the motorcycle segment is estimated at 33%.

A new model in the value segment - Platina was launched in select states across the country and its retail launch is scheduled in May. This new bike is receiving good response from the dealers and the customers. The Discover twins sold 66,137 units with demand outstripping supply. On the other hand, Pulsar twins, with sales of over 32,700 units continued the top end dominance.

Bajaj Auto's total two-wheeler sales were up 29% at 190,964 units while that of the three-wheelers grew by 21% to 21,159 units. Exports surged by 67% to 31,715 units. The company continues to be the country's No.1 exporter of two and three-wheelers.

To augment its production capacity, Bajaj Auto is setting up another plant in Uttaranchal. ‘Bhoomi Poojan’ was performed at Pantnagar (Uttaranchal) site on April 22, and the plant will go into production in the last quarter of 2006-07.

TVS Motor Company began the new fiscal on a spirited note recording 53% sales growth in motorcycles in April 2006. As against sale of 52,825 units in April 2005, the company clocked sales of 80,862 units in April 2006.

Buoyed by the motorcycle growth, the overall two wheelers recorded sales of 1,24,917 units in April 2006 compared to 92,400 units in April 2005, witnessing a growth of 35%.

The company launched new versions of TVS StaR City and Victor GLX with alloy wheels. TVS Apache that has won wide acclaim has met with an encouraging response in all the markets where it has been launched. The company is in the process of ramping up its production and spread its availability in more towns in the coming months.

TVS Scooty sales declined by 6.8% to 17,969 Units in April 2006 from 19,279 units In April 2005.

Exports surged ahead by 11% from 6,291 units in April 2005 to 7,000 units this April 2006.

According to a recent study by Boston Consulting Group and the Cll, TVS is among the list of 100 companies chosen from 12 rapidly developing economies that are emerging as global challengers.

Suzuki Motorcycle India, the new entrant into the 2-wheeler segment sold 3,675 units in April 2006. Honda Motorcycle and Scooter India and Kinetic Engineering saw their sales dipping in April 2006.

Auto industry is riding high on a double-digit growth for the past 3 months and all indications are that the industry is going to end up with a decent growth the fourth year running, unless a heavy dose of petroleum price increase spoils the otherwise upbeat scenario.