OEMs underperform in December 2012, sales downturn continues

January 2, 2013: Despite offering handsome discounts to attract buyers to their showrooms, most passenger car OEMs have failed to boost their sales in the last month of calendar year 2012. It is amply clear that December 2012 witnessed an extension of the lacklustre performance over the past six months and automakers will be hoping the 2013 Union Budget will help energise sales.

Maruti Suzuki, the bell-weather of the industry, saw its domestic sales of 82,073 units rise 5.9 percent over the 77,475 units sold in December 2011. Sales of the company’s entry-level hatchbacks (800, Alto, A-star and Wagon R) continue to be down; sales fell by 15 percent in December 2012 to 32,797 units (December 2011: 38,593) and they were down in November 2012 too, by 5.8 percent. The SX4 is also fast going out of favour with buyers; last month, sales were down by 61 percent to 329 units (December 2011: 843).

What has driven Maruti’s numbers in December is the 8.9 percent growth in sales of the Swift/Estilo/Ritz at 22,482 units (December 2011:20,653), a 42.3 percent growth in the popular Dzire saloon which sold 13,076 units (December 2011: 9,189), and the launched-in-July-2012 Ertiga people-carrier which, along with small numbers from the Gypsy and Grand Vitara, sold 5,447 units (December 2011: 238). From the 2012-13 fiscal year’s (April-November 2012) perspective, Maruti Suzuki has sold a total of 742,175 units, up 8.4 percent (April-November 2011: 684,892).

Meanwhile, along with Tata Motors, whose sales fell by a massive 51 percent, Hyundai Motor India, Toyota Kirloskar Motor and General Motors too saw their numbers drop in December 2012. The few automakers which bucked the overall trend were Mahindra & Mahindra, which is riding the demand wave for SUVs, Honda Cars India and Ford India.

Hyundai Motor India Ltd, the country’s second largest car manufacturer and the largest passenger car exporter, sold 26,697 units during December 2012 against 29,516 units in the corresponding month last year, down by 9.6 percent. The company exported 21,136 units in the month against 19,534 units, recording a growth of 8.2 percent. The aggregate sales (domestic + exports) for the month were 47,833 units against 49,050 units in December 2011. HMIL sold a total of 41,069 units of the Eon, Santro, i10 and i20 cars (A2 segment), 6,270 units of the Accent and Verna (A3 segment), 428 units of the Elantra (A4 segment), 20 units of the Sonata (A5 segment) and 46 units of the Santa Fe SUV during December 2012.

Tata Motors’ passenger car division sold 14,185 units as against 28,916 units sold in December 2011, recording a staggering 51 percent sales decline. The December 2012 sales included 11,257 units of Nano, Indica, Indigo range and 2,928 units of Sumo, Safari, Aria and Venture vehicles. However, according to the company, the newly introduced Manza Club Class and Safari Storme are doing well in their respective segments.

Mahindra & Mahindra’s passenger vehicle division (which includes UVs and the Verito saloon) registered a growth of close to 18 percent, having sold 22,761 units in December 2012 as against 19,341 units during December 2011. Speaking on the company’s sales performance, Pravin Shah, chief executive, automotive division, Mahindra & Mahindra, said: “High interest rates, rising fuel prices and an overall slowdown in economic growth have kept consumer sentiments low during 2012. This is also evident in the auto industry sales performance for December, which traditionally has been a lean month. We do hope that corrective measures are announced and implemented soon bringing in the much-needed buoyancy and growth for the industry. At Mahindra, we are happy to maintain our growth momentum even during these challenging times”.

Toyota Kirloskar Motor sold 12,071 units during the month against 15,948 units in December 2011, a decline of 24.31 percent. On the other hand, due to a low base of 1,072 cars in December 2011, Honda Cars India registered growth of 295.7 percent by selling 4,242 units in December 2012, the Brio hatchback going home to a majority. Sliding by 22 percent from its December 2011 sales of 9,039 units, General Motors sold 7,067 units during December 2012.

Ford India sold a total of 6,517 units (5,978 units in December 2011) registering a YoY growth of 9 percent. The company also achieved a record high in exports of 4,382 cars against 1,685 cars exported in December 2011. “Despite a tough business environment, we have seen record exports and sustained customer interest in December,” said Joginder Singh, president and managing director, Ford India.

Renault India sold 5,924 units as against 185 in December 2011. Its sales last month comprised 4,485 units of the Duster, 820 Scalas, 515 Pulse hatchbacks, 68 Fluence saloons and 36 Koleos SUVs. Total sales for December 2011 were 185 units with the Fluence accounting for 145 units and Koleos 40 units.

In the past 12 months, the carmaker has added three more models – the Pulse hatchback, the Duster SUV and the Scala saloon -- to its product portfolio. It has also gone about expanding dealership network across the country at a rapid pace, setting up close to 100 dealer points in the past 18 months.

Slow going too for two-wheelers

On the two-wheeler front, Hero MotoCorp sold 541,615 units during the month, more or less a similar sales level in December 2011 (540,276 units). Bajaj Auto recorded a 12.5 percent sales increase with 343,946 units (December 2011: 305,690). Overall motorcycle volumes increased by 13 percent YoY to 298,350. The Pulsar and Discover brand sales contributed 70 percent of total motorcycle sales for Bajaj Auto. On January 7, the company is expected to launch a new 100cc motorcycle developed on the Discover platform. In an interview published in Autocar Professional’s November 1, 2012 issue, managing director Rajiv Bajaj had said: “We will launch the most technologically advanced 100cc bike in the world.”

Meanwhile, TVS Motor, registered a fall of 9.6 percent in its December 2012 sales of 151,735 units against 167,905 units sold in December 2011. Suzuki Motor India posted a 24 percent growth in sales, moving out 33,753 units in December 2012 (December 2011: 27,244).

AMIT PANDAY