Festive Season Propelling Sales Growth

The automobile industry is heaving a sigh of relief with two consecutive months of double-digit growth. Sales acclivity of 20.43% was witnessed in Sep'05 vis-a-vis Sep'04.

Among the car manufacturers, Hyundai Motor India led the way, achieving a growth of 22.6% with a sales tally of 14,391 cars in the domestic market in Sep'05, over the same month in 2004.

HMI's cumulative sales during the month were 23,768 units - an overall growth of 18.6% over Sep'04. Sales in the overseas market in September stood at 9,377 units, posting a growth of 12.8% y-o-y.

HMI has sold a total of 1,90,401 vehicles in the first nine months of the year 2005, achieving a growth of 27.3% y­o-y. Of this cumulative figure, 1,18,714 units were sold in the domestic market - a growth of 20.8% - and 71 ,687 units were sold in the overseas market - a growth of 40% - over Jan-Sep'04.

The segment-wise cumulative sales in the month of Sep'05 are as follows: A2 Segment: 19,141 units, A3 Segment: 4,328 units, A4 Segment: 110 units, A5 segment: 81 units, SUV Segment: 108 units.

Car market leader Maruti Udyog Limited sold 46,393 vehicles in the domestic market in Sep'05, which is 15% more than the domestic sales in Sep'04. The company had sold 40,322 vehicles in the domestic market in Sep'04. The company's total sale in Sep'05 was 49,278 units. This includes export of 2,885 units.

MUL's volume in the domestic A2 segment comprising Alto, WagonR, Zen & Swift (29,456 units), grew by 35%, A3 segment comprising Baleno & Esteem (3,168 units) by 8% and C segment comprising Omni & Versa (6,022 units) by 7% during the month compared to sales in Sep'04. The sales of its flagship model Maruti 800 continued to dip.

Honda Siel Cars India Ltd, the leading manufacturer of premium and luxury cars in the Indian automobile industry, crossed the 40,000 milestone by recording 41,964 units of sale during the last 12 months (Oct'04-Sep'05). This represents an impressive growth of 31% over the previous corresponding period. The month of September saw a healthy 17.5% growth at 3,961 units against 3,364 units in Sep'04.

Honda City - the flagship model from the HSCI stable continued its upward trend in the month of Sep'05, registering a sale of 3,349 units as compared to 2,976 units in Sep'04, translating into a growth of 12%.

The capacity expansion project at HSCI is in full swing.

 
The construction process is going as per schedule and is expected to be over by early Nov'05. The plant shall then have a capacity of 50,000 units from the current 30,000 units.

General Motors India, in September, sold 3,220 cars as against 3,207 cars in the same month last year. Besides 1,600 Taveras, the September sales included 855 Optras and 762 Opel Corsas.

GMI recently launched the new Optra Royale with 23 luxury features and a new Tavera model in its Elite range. The Elite range has new beige interiors with plush feel fabrics. Top end variants have new features such as MP3 music system and remote keyless entry. In addition there are new body graphics and full size wheel covers.

To enhance appeal to Corporate Customer and Fleet Operators, the popular 7-seater option on Tavera L1 (LT) and B2 (LS) variants is now also available on the Tavera B1 as well as the Tavera Elite B3 (LS). This 7-seater model, offers two key benefits: a simplified vehicle registration process for corporate customers and entitlement to excise refund to fleet operators if registered as a taxi.

Mahindra & Mahindra's sales graph curved up a growth of 5.7% as compared to Sep'04, selling 13,839 units (includes 539 units of exports) in Sep'05.

Tata Motors reported a total sale of 40,095 vehicles (including exports) for the month of Sep'05, a growth of 13.24% over 35,406 vehicles sold in September last year. Cumulative sales for the company at 1,94,966 units are growing by 8%.

The passenger vehicle business reported a total sale of 16,078 vehicles in the domestic market in Sep'05, an increase of 1% over Sep'04. The Indica sold 9,669 units. The Indigo family registered sales of 3,354 units. The Sumo and Safari accounted for sales of 3,055 units.

The company's sales of commercial vehicles in Sep'05 in the domestic market were 19,087 units, an increase of 11.1 % over 17,179 vehicles sold in September last year. M&HCV sales stood at 11,331 units, while LCV sales were at 7,756 units.

The company's sales from exports were 4,930 vehicles in Sep'05 as compared to 2,301 vehicles in Sep'04, a hefty increase of 114.3%.

Ashok Leyland's domestic sales were up 26.6%, to 5,284 vehicles (4,173 vehicles in Sep'04). The company's total vehicle sales at 5,875 units, climbed up by 27.2%, compared to 4,617 units in Sep'04.

Eicher Motors' sales moved up by 10%, clocking 2,046 units (includes 199 units of exports) in Sep'05 as against 1,861 units (includes 152 units of exports) in Sep'04.

Sep'05 was a record month for Bajaj Auto Limited. Total 2- & 3-wheelers, clocked highest ever sales of 2,18,012 units. Bajaj motorcycles sold 1,80,926 units, a growth of 43% over Sep'04. However, the sales of 3-wheelers were almost flat at 23,118 units for the month of September.

Motorcycle and 2-wheeler sales grew significantly higher than the industry growth rate; motorcycle market share expected to be over 31 %.

Bajaj Wave DTS-i sales at 7,561 units are expected to reach 10,000 units in Oct'05. In spite of the capacity constraints due to non-availability of tyres, which will be overcome in Oct'05, Bajaj CT100 accrued segment-leading sales of 1,05,952. Highest ever sales were also witnessed for Bajaj Discover DTS-i at 35,441 units, Bajaj Pulsar DTS-i twins at 35,997 units and Bajaj Avenger DTS-i at 3,036 units.

Owing to strong demand from all major markets, exports at 23,463 units, moved up by 37% as against 17,138 units in the corresponding period last year.

Hero Honda, for the fourth consecutive year, continued its upswing during the month of Sep'05.

The September sales of Hero Honda marked an impressive growth of 22.3% over September last year. The company sold 2,66,071 bikes in Sep'05 vis-a-vis 2,17,507 bikes sold in Sep'04. Sales during the month have also jumped by 9.6% over the previous month (Aug'05), when the company sold 2,46,304 motorcycles.

Buoyed by new product launches and a 27% jump in motorcycle sales, TVS Motor Company achieved highest ever sales of 2-wheelers and motorcycles in a month. The total 2-wheeler sales in Sep'05 aggregating 1,21,108 units represented an increase of 16% over 1,04,837 units in Sep'04.

Total motorcycle sales of TVS in Sep'05 added up to 75,310 units vis-a-vis 59,172 units in the same period last year.

The Scooterette sales, however, dipped slightly, clocking 22,697 units in Sep'05 compared to 23,150 units in the same month last year.

Moped sales were almost flat at 23,101 units in Sep'05 compared to 22,515 units sold in Sep'04.

On the export front, TVS clocked 7,512 units in Sep'05 - a steep 126% growth y-o-y.

Announcement of various discounts and promotional schemes by the manufacturers in the festive season is sure to propel the sales graph further in the coming months.