Domestic automobile sales grows marginally in September

Half yearly (Apr-Sep) Sales also rise

Domestic vehicle sales show marginal increase in sales in both September as well as half year ended September. The pre-festival season sales for the automobile industry showed that most segments recording a marginal increase due to increased marketing initiatives, coupled with inventory push. As per the figures released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales in the country increased by 2.8% to 108,823 units during September 2008, as compared to 1,05,822 units in the year-ago month, while motorcycle sales rose by 15.2% to 632,369 units, as against 548,816 units in the corresponding month a year ago. Total two-wheeler sales in September also soared by 14.5% at 7,78,424 units, compared with 6,79,766 units in the same month last year. Commercial vehicle sales, however, decreased marginally in last month to 42,698 units from 43,091 units in the year-ago period.

A company wise breakup of the sales figures show that companies such as Hyundai, Mahindra & Mahindra (M&M) and Hero Honda posted impressive growth in wholesale dispatches to dealers as they tried to push inventory for the Diwali and Navaratri festivals. Boosted by a healthy demand for its i10 model, Hyundai Motor India (HMIL) reported 23% growth for September, selling 22,311 units in the domestic market. M&M also reported an upswing in sales, registering 31% growth by selling more than 16,000 units of Scorpio, Bolero and other models. Demand for Logan, a product jointly manufactured by M&M and Renault, however, faltered as sales slipped by nearly 20% compared with those in the same period last year. Skoda Auto sold 1,213 units, recording growth of 34% against sales of 900 units in September 2007. Sales were generally helped by the Fabia hatchback. Maruti-Suzuki, the country’s biggest car-maker, however posted dismal growth of 2.5% for the month, selling 64,682 units in the domestic market.

Among companies with decline in sales, Tata Motors, posted a decline of almost 9% in domestic sales as a ramp-up in production of its new Indica Vista marred growth. The company sold 16,586 units of passenger vehicles during the month as against 18,216 units in the same period last year. General Motors posted a decline of 10% for the month under review, selling 5,154 units as against 5,751 units in the year-ago period. Honda Siel Cars India also saw a 45% drop in sales at 3,104 units compared with 5,674 units, mainly owing to a halt in production of the outgoing City model, which was replaced by a new model that was launched in the last week of September.

In the two-wheeler segment, market leader Hero Honda extended its lead over rival Bajaj Auto, recording a 22% rise in sales at 3.85 lakh units compared with 3.14 lakh units in the corresponding month last year. Second placed Bajaj Auto sold 2.18 lakh units, reported 6% growth. Meanwhile, TVS Motors, reported rise of 16% in the domestic market, selling 1.19 lakh units last month as against 1.02 lakh units in the same month last year.

For the half year to September, domestic passenger vehicles sales remained marginally high; car sales in April-September recorded a 5.39% increase at over six lakhs units despite the increase in interest rates on auto loans and commodity prices which kept many consumers away from buying vehicles. The sales of commercial vehicles during April-September remained challenging as medium and heavy commercial vehicle declined marginally 1.57% at 1.15 lakh units. As banks remained cautious in lending and credit became difficult to obtain, the demand of heavy commercial vehicles reduced. In contrast, light commercial vehicles recorded a robust 10% growth at 1.06 lakh units. Taking advantage of last year’s low volume base, two wheeler sales remained on a healthy track. Scooters sales grew 7.24% at 5.6 lakh units, motorcycles were up 12% at 30.63 lakh units, Mopeds grew by 6.05% and electric two-wheelers segment grew by 56.14%. Half yearly data ended September also showed production growth of 12.70% over similar period last year, which is higher than last year's growth in this period.