Ten days before the much-awaited reveal of the Union Budget 2014 and five days after the finance minister’s market-lifting statement that excise duty cuts on vehicles across segments have been extended to December 31
01 Jul 2014 | 3660 Views | By Autocar Pro News Desk
Ten days before the much-awaited reveal of the Union Budget 2014 and five days after the finance minister’s market-lifting statement that excise duty cuts on vehicles across segments have been extended to December 31, green shoots of recovery seem to be sprouting in the Indian automobile market.
The first ...
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Ten days before the much-awaited reveal of the Union Budget 2014 and five days after the finance minister’s market-lifting statement that excise duty cuts on vehicles across segments have been extended to December 31, green shoots of recovery seem to be sprouting in the Indian automobile market.
The first of the passenger vehicle OEMs which revealed their June 2014 sales numbers today have reported growth in volumes. Most OEMs believe that things can only get better from now onwards, notwithstanding the Rs 1.60 per litre petrol price hike and the 56 paise increase in diesel cost, effective from July 1, following the Iraq crisis.
Maruti Suzuki India, the bellwether of the Indian automobile industry, has reported sales of 100,964 units in the domestic market, up 31.1 percent year on year (June 2013: 77,002). For Q1 (April-June 2014), the carmaker has posted sales of 270,643 units, up 10.3 percent (April-June 2013: 245,346).
In June 2014, the company’s quartet of entry level cars – Maruti 800, Alto, A-star and Wagon R – sold a total of 47,618 units, up 52.1 percent (June 2013: 31,314), while the premium compact cars – Swift, Estilo, Ritz and Celerio – sold 22,293 units, up 6.2 percent (June 2013: 20,996). The latter segment has notched the biggest growth of 21.2 percent over Q1, selling a total of 72,346 units thanks to the upsurge of demand for the AMT-equipped Celerio hatchback.
Meanwhile, the Dzire sedan continues to bring in the numbers for Maruti. The car sold a total of 15,990 units last month, recording 27.4 percent growth (June 2013:12,548). Over Q1, the Dzire has sold nearly 51,000 units. The SX4, which has been fast falling out of favour with buyers, sold only 322 units in June, and a total of 519 units in Q1, 2014-15, down 63 percent YoY.
The Omni and Eeco however have posted healthy growth of 42.5 percent in June 2014, selling 9,738 units (June 2013: 6,833).
On the export front, Maruti shipped 11,809 units in June, up 58.4 percent (June 2013: 7,453) and in Q1, 2013-14 a total of 29,251 units, up 38.7 percent.
Hyundai Motor India, the second largest carmaker in India after Maruti Suzuki India and the country’s largest passenger car exporter, has registered domestic sales of 33,514 units, which translates into growth of 9.49 percent (June 2013: 30,610). However, its exports are facing rough weather given that it saw a near-30 percent drop in June 2014 with despatches of 17,004 units (June 2013: 24,055).
Commenting on June 2014 sales, Rakesh Srivastava, senior VP (Sales and Marketing), said, “Hyundai with a volume of 33,514 units has grown by 9.5 percent over last year on the phenomenal success of the Xcent, Grand and Santa Fe. With the extension of excise duty benefit, we hope to maintain the growth in volume while strengthening our product portfolio and improving channel efficiencies.”
Mahindra & Mahindra (M&M) announced that its total sales, across vehicle segments, in June 2014 herald its first month of growth – albeit a flat 1 percent – after twelve consecutive months of fall in sales. The company sold a total of 38,471 units in June 2014 (June 2013: 38,092).
The passenger vehicles segment (which includes UVs, the Verito and Verito Vibe) sold 16,780 units, down 2.62 percent (June 2013: 17,232). Overall domestic sales were 36,457 units, up 0.69 percent (June 2013: 36,207).
While 4-wheeler commercial segment, which includes the Maxximo, Gio, Genio and Bolero Pickup, sold 14,138 units, marking a 2.74 percent growth (June 2013: 13,761), the 3-wheelers segment sold 4,544 units, up 6 percent (June 2013: 4,303). Interestingly, Mahindra Trucks and Buses clocked 9 percent growth with sales of 995 units (June 2013: 911).
Exports for the month stood at 2,014 units, up 6.84 percent (June 2013: 1,885).
Pravin Shah, chief executive, Automotive Division & International Operations (AFS), M&M, said, "We have achieved marginal growth in our sales during June 2014 and do hope that the auto industry will continue to stay in a positive zone. The recent announcement by the government of an extension in the lowering of excise duty will provide a fillip leading upto the festive season."
Meanwhile, for Honda Cars India, the Amaze and City sedans powered its sales in June 2014. The company has reported sales of 16,316 units in June 2014, notching 75 percent year-on-year growth (June 2013: 9,297). The Amaze and new City sedan have made handsome contributions to this total, selling 7,075 and 7,723 units respectively during the month.The Brio hatchback sold 1,438 units and the CR-V 80 units. For Q1 FY2014, Honda Cars India has sold a total of 40,718 units, marking a 40 percent growth (April-June 2013: 29,127).
Commenting on the month’s results, Jnaneswar Sen, senior vice-president – Marketing & Sales, Honda Cars India, said, “We extend our gratitude to customers for the continuing success of the Amaze and all-new City and are confident that we will continue to do well. We are very excited about the upcoming launch of our stylish seven-seater Honda Mobilio at the end of this month and are confident that it will attract Indian consumers with its strong desirable values.”
Honda also exported a total volume of 739 units during June 2014.
Nissan Motor India has reported a near-48 percent growth in its June 2014 sales of 4,362 cars (June 2013: 2,949). The Datsun Go contributed 1,097 units to this total, taking its overall Q1 FY14 sales to 6,268 units. For Nissan Motor India, Q1 FY14 numbers are 14,684 units as against Q1 FY13’s 6,268 units, a growth of 134 percent, albeit on a smaller total a year ago.
Ford India sold 7,258 cars in June, a flat growth of 1.58 percent (June 2013: 7,145). Together with exports of 4,677, it sold a total of 11,935 vehicles in the month, up 36 percent over the 8,771 total vehicles sold a year ago. “The government’s decision to extend the excise duty concession is a welcome move and will certainly uplift consumer purchasing sentiments as we head into the festive season over the next few months,” said Vinay Piparsania, executive director of marketing, sales and service at Ford India. “It reflects the government’s recognition of the importance of the manufacturing sector and its contribution to overall economic growth,” he said.