Auto industry bucks trend in November, posts 16% surge in sales

Published On: 01, Dec 2017 | Source: moneycontrol.com

Swaraj Baggonkar @swarajsb

Car and SUV demand witnessed an unusual surge last month after the industry made up for the below-than-expectation demand during the festive season of the previous month.

Sales of all passenger cars from the top 7 manufacturers increased by 16 percent to 2.53 lakh units as against 2.18 lakh units sold in the same month last year. A low-base effect following demonetization, continued demand from the rural segment and robust pick-up for new models has helped vehicle makers during last month.

These manufacturers generate more than 90 percent of the total passenger vehicle volumes of the industry.

Maruti Suzuki, the country’s largest car maker, saw domestic volumes grow to 1.44 lakh units, an increase of 14.3 percent compared to 1.26 lakh units sold in the same month last year.

The company’s compact segment where there are models like Ignis, Baleno and Dzire, saw a 32 percent jump in volumes while the Brezza and Ertiga category grew by 34 percent. Sales of mid-sized sedan Ciaz declined by 26.2 percent during the month.

Korean car brand Hyundai, which is also the second biggest car maker, saw its domestic wholesales grow by 10 percent to 44,008 units as against 40,016 units sold in the same month last year.

Rakesh Srivastava, Director, Sales & Marketing, HMIL, said, “Due to the strong pull of festive demand on the strength of buoyant rural markets, we hope to build on this positive momentum with a cumulative retail sales of 200,000 units for the period September to December 2017.”

Utility vehicle (UV) specialist Mahindra & Mahindra said its sales grew by 21 percent to 16,030 units during November as compared to 13,198 units sold in the same month last year. The Mumbai-based company has products like Scorpio, XUV500, TUV 300 and Bolero in the UV segment.

Rajan Wadhera, President, Automotive Sector, M&M said, “We are happy to be in a positive growth phase for November 2017, which is usually a lean period post the festive season. Our passenger and small commercial vehicles growth for the month of November have been very encouraging at 21 percent and 29 percent, respectively. We expect our growth momentum to continue on the back of some recent refresh launches as well as the positivity of our product portfolio.”

Tata Motors, the country's fourth largest car maker, posted 35 percent rise in sales in November to 17157 units as against 12736 units sold in the same month last year. The newly launched Nexon saw a ramp-up of volumes during the month which helped in increased dispatches. Tata Motors also became the largest selling carmaker after Maruti and Hyundai.

Japanese heavyweight Toyota said its India sales grew by 13 percent to 12,734 units during November as against 11,309 units sold in the corresponding month last year.

Raja, Director & Senior Vice President, Sales & Marketing, Toyota Kirloskar Motor said, "The November month has been promising for us with a double-digit growth. With maximum utilization of Plant 1 and maintaining lean inventory we are trying to reduce the waiting period of Innova and Fortuner for our customers. The demand has grown every month since its launch last year in 2016."

Thanks to the face-lifted EcoSport domestic volumes of Ford India grew by 13 percent in November to 7777 units as compared to 6876 units sold in the same month last year.

Anurag Mehrotra, President & Managing Director, Ford India said, “November was all about the new Ford EcoSport. We are confident of maintaining this sales momentum getting into 2018, despite macroeconomic indicators suggesting volatility in inflation and crude prices impacting the industry growth over the near-medium term.”