Auto sector records 10 percent growth in April

May 10, 2012: India’s total automotive sales across cars, CVs, two-and three wheelers rose by 10 percent in April 2012 to 14,72,385 units as against 13,38,430 units in April 2011. Passenger cars went up by 3.4 percent despite the huge March numbers while medium and heavy CVs fell by 11.6 percent. Maruti Suzuki India sold 90,255 units, just three percent over the 87,144 units sold in April 2011, a relatively quiet start to the new fiscal. In what has come as a surprise, the best-selling Alto was dethroned from its top position by the Swift which sold 19,484 units as against the Alto’s 17,482 units. It remains to be seen if the Swift continues its stellar performance, which is clearly driven by the massive consumer demand for diesel-engined cars.

In the LCV segment, both goods and passenger vehicles recorded growth rates of over 14 percent. With the emphasis on last-mile transportation and the impact of the Grameen roads building project, sales in these sectors have seen a substantial increase. One noteworthy product that was launched last fiscal was the Ashok Leyland Dost pitched against the Ace, and which has sold over 5,000 units in the last quarter of 2011-12.

Two-wheelers recorded a 10 percent growth while bikes and step-throughs went up nearly 7 percent to 861,602 units. In the exports sector, the rise was just 1.29 percent to 2,65,553 units, up from 2,62, 172 units.

April sales are usually lower as buyers tend to bunch up their purchases in the last month of the fiscal. SIAM has forecast that the passenger vehicle sector will grow by 10-12 percent in 2012-13 but it remains to be seen how a hike in fuel prices impacts buyer sentiment.

BRIAN DE SOUZA