India auto sales: April’s sluggish numbers indicate tough year ahead

May 2, 2013: Automobile sales in the first month of the new fiscal year are clearly indicative of a tough year ahead for automakers. Most OEMs, barring a few, have registered declines. A sluggish economy, poor market sentiment and high bank interest rates are making their present felt, with footfalls sharply down in OEM showrooms. Also, the post-Budget 3 percent excise duty hike on SUVs is now having its impact with slower sales for big players like Mahindra & Mahindra.

Petrol-engined car owners though are seeing some relief with the price of petrol dropping by around Rs 4 a litre in April. On May 1, the Rs 3 slash per litre cut in the fuel added to their relief.

Maruti Suzuki India, the country’s largest carmaker, saw flat sales, selling a total of 90,523 units in April 2013, down .3 percent (April 2012: 90,255). The company petrol-only stable of entry-level hatchbacks (800, A-star, Alto, Wagon R) saw a growth of 13.7 percent, selling 34,927 units (April 2012: 30,720), which means buyers are slowing turning around to purchasing petrol cars again, what with the government firm on upping diesel prices gradually. Sales of the Swift-Estilo-Ritz trio were, however, down 17.4 percent to 21,535 units (April 2012: 26,072). The popular Dzire continued to bring in the numbers for Maruti, selling 19,446 units, up 25.4 percent (April 2012: 15,510). Among the utility vehicles, the Ertiga was the big seller in the total of 5,318 units, which were 4.9 percent down year on year (April 2012: 5,593).

Number two player Hyundai Motor India saw its April 2013 sales slide 7.6 percent to 32,403 units (April 2012: 35,070).

For Mahindra & Mahindra, April 2013 was a flat month. Its passenger vehicles division (which includes UVs and the Verito saloon) registered a growth of 1 percent, having sold 20,748 units in April 2013 (April 2012: 20,554). Pravin Shah, chief executive, Automotive Division, M&M, said: “We are extremely disappointed that the additional 3 percent excise duty on SUVs has not been reversed in the Finance Bill, which would have brought about some cheer and momentum for SUV makers and provided them with a level playing field. We remain cautiously optimistic of the current situation and do hope that with the much-awaited and needed reduction in interest rates announcement by the RBI next week, the auto industry will look up.”

Renault India continues to reap good numbers from its popular Duster SUV, the model contributing in a big way to the company’s total of 6,314 units in April 2013 (April 2012: 615).

Honda Cars India saw a near-20 percent growth in its April numbers, selling 8,488 units (April 2012: 7,075). The monthly sales break-up was Brio (1,628), Amaze (4,852), City (1,917), Accord (33) and CR-V (58). Commenting on the numbers, JnaneswarSen, senior vice-president – Marketing & Sales, said: “April 2013 was a significant landmark in Honda’s journey in India. With new investments in the Tapukara plant, launch of the advanced i-DTEC diesel engine technology, and the rollout of new family saloon Amaze, Honda has set on a new phase of growth in the country. The Amaze has received tremendous response despite the slowdown in the industry and we are confident that it will drive our growth this fiscal.”

Meanwhile, both Toyota Kirloskar Motor and Ford India saw a double-digit decline in their April sales. While the Japanese carmaker sold 9,007 units (April 2012: 14,378), down 37 percent, Ford India sold 4,003 units (April 2012: 7,201), down 44 percent. General Motors India too saw a sales decline, selling 8,196 units (April 2012: 8,005).

Two-wheelers too feel the heat
The two-wheeler sector too has been feeling the heat from slowing sales. Hero MotoCorp, the largest player in the country, saw its sales slide 9.51 percent in April to 499,113 units (April 2012: 551,557), while Bajaj Auto’s sales of 300,827 motorcycles (both domestic and export sales) were down 12 percent (April 2012: 342,324). TVS Motor Co sold a total of 142,794 units, down 5.5 percent on April 2012 sales. India Yamaha Motor though bucked the trend, albeit on a low base, with sales of 35,927 units (April 2012: 26,944).