November 2, 2012: Automobile manufacturers, beleaguered for many months with sharply dipping sales, finally have something to look forward to. If October sales numbers are any indication, most key OEMs could be looking at improved numbers in the coming months. Among the carmakers, while Maruti has posted good growth, Mahindra & Mahindra notched its highest-ever monthly sales. Tata Motors, however, has not yet caught the consumers’ fancy, failing to make the most of the festive demand. With Diwali still a fortnight away, companies are offering deep discounts on existing models and also introducing a flurry of new cars. However, inflation, high fuel prices and interest rates could continue to play spoilsport.
Maruti Suzuki India sold a total of 96,002 units (October 2011: 51,458 units), a growth of 86.5 percent but that’s due to a much smaller base. The hugely popular Dzire saloon continues to bring in good numbers for Maruti, selling 14,389 units in October 2012; it has contributed 87,539 units to Maruti’s overall April-October 2012 sales of 453,497 units in the domestic market.
The entry level hatchback segment (Maruti 800, Alto, A-star and Wagon R) also posted improved numbers and sold 42,233 units in October 2012 (October 2011: 68.9 percent), up 68.9 percent. In the coming months, consumer demand for the new Alto 800, which has already notched over 30,000 bookings, will drive sales in this category. Meanwhile, the Swift, Estilo and Ritz went home to 22,459 owners, compared to 10,859 units last October.
In the utility vehicle segment Maruti sold 7,400 units in October, thanks to the Ertiga which is averaging sales of over 6,500 units every month. In the van category, the Omni and Eeco saw sales drop 12.1 percent to 8,791 units, down from the 9,996 units sold in October 2011.
The second half of 2012-13 should see Maruti fare better. With production at the Manesar plant moving up to almost 90 percent of its peak capacity, the carmaker should be able to achieve volume growth. Furthermore, vehicle price increases and lower discounts after Diwali should help it improve its margins.
Hyundai Motor India, the country’s second largest carmaker, sold 35,778 units last month, a 8.41 percent growth. The company, which has announced a Rs 1,615 crore investment in a new flexible engine plant and a new press shop, will now be going all out to make the most of the demand for diesel-engined cars.
For Mahindra & Mahindra (M&M) , October was a good month where it got its all-time high monthly auto sales of 53,438 units, representing a 29 percent growth (October 2011: 41,506 units).
The company’s passenger vehicles division also registered all-time high sales at 26,932 units in October 2012, up 44 percent (October 2011: 18,756). Total domestic sales stood at 51,316 units in October 2012, up 30 percent (October 2011: 39,352). Given the considerable waiting period for flagship product XUV500, M&M has been increased to 5,000 units per month.
Meanwhile, the four-wheeler commercial vehicle segment which includes the passenger and load categories registered 26 percent growth at 16,561 units (October 2011: 13,101).
While sales of the company’s three-wheeler division rose by 10 percent to 6,973 units (October 2011: 6,332), Mahindra Navistar Automotives’ sales fell by 27 percent to 850 units (October 2011: 1,163).
Tata Motors’ sales of passenger vehicles at 21,119 units fell 16 percent (October 2011: 25,124). November numbers should be better considering there’s an encouraging response to the new Tata Manza Club Class, now available across the country, and the Tata Safari Storme, now available in the NCR region, Chandigarh and Lucknow, the company said.
Sales of the Nano were 4,004 units (October 2011: 3,868), higher by 4 percent. The Indica and Vista range sales sold 6,692 units, down 38 percent (October 2011: 10,812. The Indigo range recorded sales of 5,748 units, lower by 8 percent (October 2011: 6,268 units). The Sumo/ Safari/ Aria/ Venture range sales were 4,675 units, higher by 12 percent (October 2011: 4,176).
While Toyota Kirloskar Motor clocked 14 percent growth, selling 12,281 vehicles (October 2011: 10,762), Ford India’s October sales of 7,577 units were down 6.35 percent on October 2011 sales. Ford India, which is driving its customer aftersales service, recently launched its first Quick Lane service centre in India at Metro Ford in Yeshwantpur, Bangalore. Featuring customer-friendly benefits like extended operating hours during weekdays and Saturdays, the Quick Lane initiative is designed to enhance the service experience.
GM India, which sold 6,754 units (October 2011: 10,062), will be banking on the recently launched Chevrolet Sail U-VA to bring in the numbers.
Renault India is reaping the benefits of consumer demand for the Duster SUV. The company has 6,790 vehicles in October. Expect the Duster, which has been averaging monthly sales of nearly 4,000 units, to comprise a large chunk of this.
Meanwhile, Audi is well on way to achieve its 2012 sales target of 8,000 units. The German luxury carmaker registered a total sale of 850 units in October 2012, a strong growth of 76 percent (October 2011: 482 units). On an annual basis, it recorded a 55 percent growth rate YTD with 7,267 vehicles sold from January to October 2012. (January-October 2011: 4,692 units).
“Audi is the growth driver of the luxury market in India and our company is also growing from strength to strength with 22 dealerships. We have tapped the Uttar Pradesh market by opening up a new dealership in Kanpur and plan to open a new one in Lucknow soon. By end-2012, we will have at least 25 dealers pan-India,” said Michael Perschke, head, Audi India.
Two-wheeler OEMs ride the festive mood
Monthly sales for market leader Hero MotoCorp Ltd (HMCL), which have been under pressure for the past few months, have bounced back. The company has reported its highest-ever despatch sales for October.
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While sales had dipped to below the 400,000 unit mark in September, October 2012 saw despatches of 529,215 two-wheelers (October 2011: 512,238).
In terms of retail sales, HMCL sold over 350,000 units in just the first fortnight of the festive period which began from October 16. It also posted its highest-ever scooter sales for any month by crossing the 50,000 units mark in October 2012. The new 110cc scooter – Hero Maestro – has clicked with buyers along with the 100cc Pleasure. As a result of the demand, HMCL has scaled up its scooter production to over 60,000 units a month.
Anil Dua, senior vice-president (marketing and sales), HMCL, said: “Our October story is about touching new milestones: Highest-ever October sales, over 50,000 scooter sales and retail of over 350,000 units of two-wheelers in just 15 days. The entire range of our new Hero-branded models, including the new launches – Maestro and Ignitor – is reflected in these numbers. With Diwali around the corner, we are prepared for even better retail sales in November as well. We hope the improved market sentiment will sustain itself as we go forward into the rest of this fiscal.”
The hard-charging Honda Motorcycle & Scooter India (HMSI) clocked sales of 250,606 units last month (October 2011: 178,181), up 40 percent. The company has been averaging growth of 25-35 percent consistently.
While TVS Motor Co, which launched the 125cc Phoenix last month, notched 6.5 percent growth with sales of 170,273 units, India Yamaha Motor has posted near-three percent growth with sales of 39,368 units.