India Market Sales Analysis – May 2012

After a sales bonanza in March 2012 in which car sales increased by 20 percent, May 2012 sales were the second consecutive month in which sales hit a rut. Maruti Suzuki, the market leader, sold 89,478 units in May, down by 4.3 percent over its year-earlier month sales of 93,519 units. The Alto, dethroned in April by the Swift, was back at the top but just by a whisker with 20,724 units sold as against 20,050 for the Swift. This is a clear indication that the recent petrol price hike of over Rs 7 per litre, the largest since the fuel was de-controlled in June 2010, has affected buyer sentiments. Without a diesel version, Alto sales have been affected.

Sales of the Wagon R also bore the brunt of the petrol price hike, falling to just 7,101 units, 30 percent lower than April 2012 sales. Available only in petrol and LPG, the Wagon R’s monthly sales have averaged 10,000 a month. The new Swift Dzire, however, sold 17,707 units in the month, 63 percent higher than sales in May 2011 and has proved to be a boon of sorts for Maruti which has totted up over 30,000 units of both Swift and Dzire every month.

Hyundai Motor India sold 32,010 units in the month, just 2.8 percent over May 2011 sales of 31,123 units. ArvindSaxena, director, marketing and sales, HMIL, said: “The recent hike in petrol prices has depressed market sentiment.”

Segment-wise cumulative sales for May 2012 are: A2 segment 48,250 units (Eon, Santro, i10, i20); A3 segment 7,306 units (Accent, Verna); A5 segment 43 units (Sonata); 71 units (Santa Fe). Individually, the Eon sold 7,346 units, retaining its position in the Top10 for the month. Sales of the car’s LPG version account for about five to 10 percent of monthly sales, say dealer sources.

Tata Motors’ sales of passenger vehicles for May 2012 totalled 20,503 units, up six percent over 19,401 units sold in May last year. The Nano sold 8,507 units, up 31 percent compared to 6,515 units in May 2011. The Indica and Vista range sold 5,467 units, down one percent over 5,497 units sold in May last year. The Indigo and Manza range recorded sales of 3,397 units, lower by 20 percent over 4,268 units sold in May last year.

Mahindra & Mahindra’s May 2012 sales rose to 39,938 units as against 32,159 units during May 2011, an increase of 24 percent. The Bolero continues to be on a roll with 9,584 units sold while the Verito sold 943 units, mostly diesel. The XUV500’s sales continue to rise steadily with sales of 3,471 units recorded in May. The company has opened bookings for the next phase even as it ramps up production to 4,000 units a month to cater to burgeoning demand for the flagship SUV.

General Motors sold a total of 6,709 units in the month as against 8,329 units in the previous year-earlier period. The Chevrolet Beat topped GMI’s tally with 4,104 units, thanks to a diesel variant, followed by the Tavera and the Spark with 946 and 730 units respectively. Sales of the Cruze plunged to just 188 as buyers wait for the new Cruze that is expected shortly. The Captiva SUV sold 22 units.

Volkswagen India sold 4,564 units in May and its sales for the Polo and Vento were 2,039 units and 2,168 units respectively.

Honda Siel Cars sold 10,334 units in the month with the Brio selling 4,512 and the City, 3,753 units. The Jazz had yet another superb month, selling 1,948 units and topping April 2012’s 1,300 units. Honda’s Greater Noida plant is now fully operational and the company is trying to clear the backlog of bookings for the Jazz and the Brio.

Toyota’s sales more than doubled as a result of a good showing of the Etios and its hatchback sibling, the Liva which sold 4,270 and 2,578 units respectively. The new Innova totted up 6,710 units. The Corolla sold 523 units. The company’s cumulative sales for the month was 15,480 units. Ford India’s mainstay, the Figo, sold 4,726 units in May even as its Fiesta Classic and New Fiesta brought in sales of 913 and 257 units respectively. The company will now be pinning its hopes on the EcoSport SUV which will be launched in early 2013.

Nissan Motor India reported a 98 percent increase in year-on-year sales for May, selling 3,138 units as against 1,588 units sold in May 2011. Growth was driven by the Sunny saloon and the Micra compact premium hatchback. Since its launch, the Sunny has sold 18,753 units. The company is now gearing up for the Evalia MPV launch later this year.

In the luxury segment, Audi India sold 450 cars in the month to bring its 2012 tally to 3,281 units. It recently opened its second showroom in Madhya Pradesh, its first being at Indore and inaugurated over a month ago. Last month, Audi Finance announced the launch of Audi CarLife – Advance in India – a loan package for the A4, A6 and Q5 – that covers finance, insurance, service plan and extended warranty. Meanwhile, BMW India sold 626 units in the month. Its top-sellers include the 3-series with 195 units sold and the 5- series with 209 units going home to new owners.

There's no stopping Hero MotoCorp

In the two-wheeler segment, Hero MotoCorp reported its highest ever monthly sales at 556,644 units in May, up 11.28 percent over 500,234 units sold in May 2011. The company said its sales in May this year surpassed its previous highest of 551,557 units recorded in April 2012. Senior vice-president (marketing and sales) Anil Dua said: “The company is cautiously optimistic that the expected normal monsoon and the consequent good harvest should perk up the sentiment in the coming months.” Hero MotoCorp currently has about 5,000 customer touch points and plans to add another 400 touchpoints to its network this year. Scooter sales are also on the upswing.

Bajaj Auto’s sales in May 2012 rose by one percent over 317,989 units to touch 321,922 units. The company recently launched a new Discover 100 and earlier the 125 ST and Pulsar 200 NS, all of which it hopes will drive sales in the months ahead.

Honda Motorcycle & Scooter India sold 221,540 units in May 2012, 52 percent over May 2011. The company has launched its Dream Yuga that aims to take on the market leader, Hero, on its own turf. May 2012 sales comprised 95,507 bikes and 126,033 scooters. Honda’s CBR 250R was given the India Design Mark (I Mark), awarded by the India Design Council.

TVS Motor Company’s sales dipped by close to five percent to 173,092 units as against 181,891 units in the year-earlier month. Scooter sales declined by 2 percent to 38,833 units in May, from 38,168 units in the same month of 2011, while motorcycle sales fell by 16 percent to 64,134 units from 75,619 units in the year-ago period

Suzuki Motorcycle India recorded a 21.59 percent increase in its May 2012 sales figures as compared to May 2011 selling 36,746 units as compared to 30,222 units in May 2011. During the month, the company launched its mass market offering, the Hayate which the company claims has received a good response.

Mahindra Two Wheelers, riding on the Duro DZ that was recently debuted plans to launch yet another scooter, the Rodeo RZ. Its cumulative scooter sales from April to May 2012 stood at 19,287 units. Sales in May 2012 were 9,096 units. “We are really excited about the Rodeo RZ. It is sure to be an instant hit among young, modern couples who would love riding this zippy, stylish scooter,” said VirenPopli, senior vice-president – marketing, sales and customer care.

The sharp increase in petrol prices has dampened buyer segment in the passenger car segment and a slowing economy will likely have some impact on sales in the run-up to the Diwali season. OEMs – both car and two-wheeler manufacturers – will now pin their hopes on an abundant monsoons to push sales later in the fiscal.