It was a mixed September for automobile manufacturers, with car-makers struggling to touch last year's levels even as two-wheeler companies reported good buying support.
Barring a few exceptions, it was the sixth straight month of declining sales for the car industry. With rising interest rates, increasing fuel prices and a slowing economy, prospects of an immediate turnaround look grim.
Market leader Maruti Suzuki India registered good numbers during the month, posting a near 12 per cent increase overall. However, domestic sales, net of exports, increased only 1.8 per cent to 90,399 units, against 88,801 units in September last year.
In contrast, the second largest carmaker, Hyundai Motor India, saw a 1 per cent fall in domestic sales.
Tata Motors continued to struggle, with sales showing a drastic drop in both passenger and commercial vehicles. Passenger car sales plunged 41 per cent year-on-year for the Nano maker.
General Motor India’s sales also fell 5 per cent to 7,048 units (7,403 units). Mahindra & Mahindra’s numbers went down 21 per cent to 18,916 units (23,808 units).
“While there has been a growth over August 2013, it is not to the extent that makes us comfortable, especially as we approach the festive season. Factors such as increase in input and raw material costs and the depreciating rupee have not helped,” said Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra. The auto industry is definitely in need of a stimulus to boost consumer sentiments, leading to a turnaround in the sector as well as a revival of the economy in general, he said.
However, Ford India, Toyota Kirloskar Motor and Honda Car India Ltd saw good numbers during the month. “Honda Cars has outperformed despite a consistent slump in the demand of passenger cars over the past eight months. We are happy to see a huge demand for the Honda Amaze and Brio. The sales figures have set a positive tone for the upcoming festive season,” said Jnaneswar Sen, who heads marketing and sales at Honda India.
In the two-wheelers segment, the companies saw good numbers coming in during the month. Hero MotoCorp, the market leader, sold 4.68 lakh units, up 16 per cent from 4.04 lakh units in September 2012. “Our performance in September is a result of the strong retail growth we have reported throughout the first half of this financial year.
With a slew of new offerings that we have planned, we enter the festive season with optimism and confidence,” said Anil Dua, Senior Vice President, Marketing & Sales, Hero MotoCorp.
Others, such as TVS Motor, Yamaha Motor and Honda Motorcycle, saw double-digit growth during the month.