The auto industry ended 2014 on a positive note, with most companies logging decent sales growth in December.
This was mainly because of excise duty cuts, which were in force till December 31, and the decrease in fuel prices.
However, things may not remain the same in January with the Government rolling back the excise duty cuts.
Nevertheless, auto companies are hopeful that the Central Government will provide a boost to the sector in the forthcoming Union Budget.
In the passenger vehicles segment, market leader Maruti Suzuki India sold 98,109 units in the domestic market in December 2014, up 13 per cent from 86,613 units in December 2013.
Hyundai Motor India, the second largest company, sold 32,504 units, up 15 per cent from 28,345 units a year ago.
Challenging market“In the challenging market conditions of calendar year 2014, Hyundai had all-time record-high sales of 4.11 lakh units,” said Rakesh Srivastava, Senior Vice President-Sales and Marketing.
Toyota Kirloskar Motor sold 11,740 units (10, 648), registering growth of 10 per cent.
General Motors India reported a 36.56 per cent decline in sales at 3,619 units in December. It had sold 5,705 units in the same month of 2013. “Demand continues to remain suppressed on account of high interest rates and weak economic fundamentals. The withdrawal of excise duty benefits is also a big jolt for the automobile industry,” General Motors India Vice President P Balendran said.
Mahindra & Mahindra reported 5 per cent growth in sales at 17,311 units (16,436) in December 2013. “We continue to remain optimistic on the back of our (planned) product launches in 2015,” said Pravin Shah, Chief Executive, Automotive Division and International Operations, M&M.
However, in the commercial vehicles segment, the company’s sales declined 15 per cent to 12,194 units, from 14,399 units in the same month last year.
Volvo Eicher Commercial Vehicles saw its sales jump 26 per cent to 3,002 units (2,372).
In the two-wheeler segment, market leader Hero MotoCorp saw a marginal growth in sales with 5,26,097 units, compared with 5,24,990 units in the same month last year.
Chennai-based TVS Motor Company sold 1,57,438 units (1,32,664), posting 19 per cent growth.
Similarly, Royal Enfield grew 48 per cent, selling 28,179 units (19,067).