June '09 car sales up 7.8 percent

The availability of new passenger cars like the Maruti Ritz, Honda Jazz and Fiat Grande Punto, coupled with improved access to finance, resulted in passenger vehicle sales jumping a substantial 8.2 percent to 140,243 units during June 2009. During this time, passenger car sales increased by 7.8 percent to 107,531 units compared to 99,741 units during the same month last year. Inspite of this, passenger car sales in June were actually down from May 2009, when 113,490 cars were sold.

Commercial vehicle sales continued to remain under pressure, declining by 12.5 percent in June to 36,193 units as transporters continued to postpone purchases till freight movement revives strongly. In fact medium and heavy truck sales fell even more dramatically by 31 percent, while light commercial vehicles actually grew by 10 percent thanks to sustained demand for light pickup trucks like the Tata Ace. Cumulative production during April to June 2009 showed a growth of 9.46 percent over the same period last year, while production in June grew even faster at 11.84 percent as manufacturers began re-stocking their vehicle stocks. However, commercial vehicle production during the first quarter was down 19 percent, while June saw a decline of 10.6 percent.

Passenger vehicle sales during April to June 2009 grew marginally at 3.81 percent over the same period last year, while passenger cars grew by 4.75 percent, utility vehicles sales declined 6.90 percent and multi-purpose vehicles grew 19 percent in this period. Meanwhile, three-wheeler sales grew 6.90 percent during April to June 2009, with passenger carriers growing 16.64 percent. However, goods carriers declined 18.95 percent. In June 2009 itself, three-wheelers sales grew at 13.17 percent.

Two-wheelers grew 14.48 percent during April to June 2009, with mopeds, scooters and motorcycles growing by 21.88 percent, 18.33 percent and 13.50 percent respectively. The electric two-wheeler segment dropped by 57.64 percent. In June 2009, two-wheeler sales grew 17.44 percent primarily due to increased availability of credit. However, the June two-wheeler sales of 706,937 units are lower compared to May 2009 when 727,937 units were sold.

The first quarter of 2009-10 also saw automobile exports increasing by 1.32 percent with all segments except passenger vehicles declining. In fact passenger vehicle exports grew by 44.56 percent in this period, while in June itself the growth was higher at 58.93 percent. This was thanks to increased demand for small and fuel-efficient cars like the Maruti A-star and Hyundai i10 and i20 in the European market due to the scrappage schemes which are currently in force in Germany, France and the UK. These schemes offer car buyers financial incentives to trade in their older cars for newer, more fuel-efficient models.

Hyundai Motor said its exports grew 33 percent in June to 24,241 cars over the same month last year. Compared to May '09, its exports increased by 21 percent. According to Arvind Saxena, senior vice president - marketing and sales, Hyundai Motor India, “The first half of 2009 sales saw us maintain a strong position in the overseas market which, of course, saw resurgence due to the incentives in many European countries. In the domestic market too, we maintained our leadership position although the growth curve remained flat.”

Maruti reported an even higher increase in its exports which rose 176 percent to 13,336 cars in June compared to 4,836 cars sold last June. Its exports increased 47 percent in June from 9,087 cars in May 2009.

Tata Motors said its total sales including exports of commercial and passenger vehicles were 45,399 vehicles in June, a decline of 4 percent over the 47,245 vehicles sold in June last year. The company’s domestic sales of commercial and passenger vehicles in June 2009 were 43,244, a one percent decline over 43,814 units sold in June last year.

Tata’s passenger vehicle business reported a total sale of 19,513 cars, which included 2,474 units of Fiat cars in June 2009 within India, which was an 11 percent increase compared to the 17,567 units sold in June 2008. The Indica range grew its sales for the fifth consecutive month, with sales of 10,210 units, an increase of 19 percent over June 2008 thanks to the growing popularity of the Indica Vista.

Mahindra & Mahindra said its domestic auto sales for June 2009 were 22,526 units, an increase of 23.9 percent. The Xylo sold 2594 units in June, continuing its strong run in the market.