Leader’s July Car Sales Up 18%; Hyundai, Tata Slip

AUTO makers didn’t have much to cheer about last month. Though new launches helped some auto makers grow their sales tally, majority reported a decline in sales in July. Auto analysts have pegged the car market’s growth for last month at just 8-9% and this is largely due to Maruti’s healthy double digit growth. Two-wheeler manufacturers continued with their dismal show and posted negative growth for the month.

Market leader Maruti Suzuki’s cumulative sales were up 24.8% to 57,909 units as compared to 46,408 units sold in July 06. While the company’s domestic passenger vehicle sales grew 18%, its passenger car sales was up 17.8% at 52,315 units.

Maruti Suzuki India managing director Jagdish Khattar said the company clocked high double digit growth despite the subdued demand for passenger cars. “June and July have been tough for the industry due to increase in interest rates,’’ he said. Maruti exported 5,070 units.

Tata Motors posted a 6.7% decline in sales of passenger vehicles at 17,011 units while its commercial vehicles sales were down 3.8% to 20,705 units. The company’s total sales were down 6.6% selling 42,098 vehicles.

Ditto for Korean major Hyundai Motor India, whose domestic sales were down 7.4%. The company said domestic sales suffered because it was servicing export orders. Thanks to Hyundai’s 16.6% gain in exports (13200 units) Hyundai’s overall sales in July were up 14.6% to 28,203 units. Japanese car maker Honda Siel Cars India’s sales were down 17%. Skoda Auto India continued to sell few vehicles and posted a decline of 15.4%.

American car maker General Motors India however managed to grow by high double digit figures due to its new small car Spark. The company’s sales were up 89%,
Mahindra & Mahindra which rolled out its two millionth vehicle in July, posted a 49% increase in domestic sales selling 18,356 units against 12,841 units in the same month a year ago. The company’s exports during the month, however, declined 4% to 627 units against 655 units last year, M&M said in a statement.

Mahindra-Renault sold 2,890 units of its flagship sedan Logan in July. The company said its Logan and SUV Scorpio continue to lead in their respective segments. Analysing the auto sales in July, Price Waterhouse partner Abdul Majeed said, “Car sales are down because the increase in interest rates have hiked home loan EMI’s. So the consumers are not ready to spend on a new car. The trend is likely to become positive by the festive season.”

Two-wheeler market leader Hero Honda’s total sales for the month of July, dipped to 2.01 lakh units over 2.35 lakh units in July 06. Arch-rival Bajaj Auto sales were down 6% to 1.62 lakh units. Its motorcycle sales were down 7% to 1.59 lakh units. The company in a statement said that motorcycles continued to struggle, owing primarily to product fatigue in the 100-cc segment and said that the 100 -cc plus segments are growing.

Source: Economics times