While the 4 percent excise duty cut on small and midsized cars and 6 percent on SUVs on February 17 brought cheer to all OEMs, February 2014 sales numbers reveal that consumers are yet to warm up to the downward price revisions.
03 Mar 2014 | 4081 Views | By Autocar Pro News Desk
While the 4 percent excise duty cut on small and midsized cars and 6 percent on SUVs on February 17 brought cheer to all OEMs, February 2014 sales numbers reveal that consumers are yet to warm up to the downward price revisions. The combination of high interest rates, changing fuel ...
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While the 4 percent excise duty cut on small and midsized cars and 6 percent on SUVs on February 17 brought cheer to all OEMs, February 2014 sales numbers reveal that consumers are yet to warm up to the downward price revisions. The combination of high interest rates, changing fuel prices and a general lethargy in the market is still keeping consumers from fully opening up their wallets and making purchase decisions.
Maruti Suzuki India, the country’s No. 1 carmaker, recorded a 1.84 percent increase in its domestic sales in February 2014, selling a total of 99,758 units (February 2013: 97,955). The recently launched Celerio hatchback is good news for the company, given that the biggest growth has been in the four-car Swift-Estilo-Ritz-Celerio combine that sold 28,672 units, up 19.40 percent (February 2013: 24,021). Given that this category for Maruti has been logging flat or negative growth since November 2013, clearly the Celerio has provided the winning touch. With over 20,000 bookings in hands, half of them for the AMT-equipped Celerio, Maruti should be logging smart gains over the next few months.
Maruti’s entry level pack (M800, Alto, A-star and Wagon R) sold a total of 37,342 units, down 9.60 percent (February 2013: 41,311), indicating that demand for the Celerio has impacted this segment. Meanwhile, sales of the popular midsize Dzire sedan remained flat at 18,353 units, up 0.20 percent (February 2013: 18,316). The SX4 sold 228 units in February 2014 as against 215 units in February 2013.
Maruti’s UV range (Ertiga, Gypsy and Grand Vitara) took a hit, down 12.20 percent with sales of 5,231 units (February 2013: 5,957).
Meanwhile, No. 2 player, Hyundai Motor India registered flat sales of 34,005 units in February 2014 (February 2013: 34,002), up 0.01 percent. Rakesh Srivastava, senior VP, (Sales and Marketing), said, "After the reduction in excise duty, enquiry inflow has increased. It is expected that this will lead towards creation of a positive momentum."
Mahindra & Mahindra (M&M) sold a total of 19,308 units in February 2014 (February 2013: 23,421), down 17.56 percent. Commenting on the sales, Pravin Shah, chief executive, Automotive Division, M&M, said, “The auto industry has received the much-needed boost in terms of an excise duty reduction, which has resulted in higher enquiries. The recently concluded Auto Expo has also been a success, which will help in generating demand. We are hopeful that these positive initiatives would be the beginning of a gradual upswing for the auto industry, as we move into the next financial year.”
Tata Motors sold 11,325 passenger cars during the month, a growth of 6.71 percent (February 2013: 10,613) Sales of the Nano/ Indica/ Indigo range in February 2014 comprised 9,026 units while the Sumo/ Safari/ Aria/ Venture range sold 2,299 units. Nevertheless, compared to Tata’s sales tally of 40,961 in February 2012, the numbers are majorly down for the company, seen over two years.
Toyota Kirloskar Motor (TKM) sold 10,100 units in February 2014 (February 2013: 12,756), down 21 percent. N Raja, senior VP (sales and marketing), said: “The excise duty cut was a welcome step taken by the government to revive sales. However, other factors like high interest rate, falling rupee and unstable fuel pricing still loom large in the market.”
Honda Cars India, which sold 14,543 units in the month, posted handsome growth of 123 percent (February 2013: 6,510). The recently launched fourth-generation City has received a strong market response and the sedan sold 7,213 units. Meanwhile, the Amaze sedan continues to pull in buyers and sold 6,030 units. The other sellers were the Brio hatchback (1,235 units) and the CR-V SUV (65 units). The company recently inaugurated its second car manufacturing plant at Tapukara in Rajasthan.
Jnaneswar Sen, senior VP (marketing & sales), commented, “We are happy to see the huge demand for the all-new Honda City. The deliveries for the petrol City have begun from February and with both our car manufacturing plants in operation, it will aid in quick delivery of cars and cater to the strong demand from our customers.”
Ford India’s sales saw 51 percent growth with 6,799 cars going home to news owners (February 2013: 4,490). “The new pricing and features of the Ford Classic and wi-fi capability on the Figo have received an encouraging response from customers, alongside continued demand for the all-new Ford EcoSport. The recent reductions in excise duty should provide a positive message to customers,” said Vinay Piparsania, executive director of marketing sales and service.
| FEB 2014 SALES | |||
| Carmakers | Feb-14 | Feb-13 | % growth |
| Maruti Suzuki | 99,758 | 97,955 | 1.84% |
| Hyundai Motor India | 34,005 | 34,002 | 0.01% |
| Mahindra & Mahindra | 19,308 | 23,421 | -17.56% |
| Tata Motors | 11,325 | 10,613 | 6.71% |
| Toyota Kirloskar Motor | 10,100 | 12,756 | -20.82% |
| Honda Cars India | 14,543 | 6,510 | 123.39% |
| Ford India | 6,799 | 4,490 | 51.43% |