Car sales in country continued to grow at steady pace in May 2015 with most manufacturers registering positive growth as factors such as improved sentiment, lower fuel prices and interest rates are working in favour of the industry. However, they continue to feel pressure from the rural market due to fall in demand.
Market leader Maruti Suzuki’s domestic sales rose 13 per cent during the month to 1,02,359 units on the back of good sales of Alto and WagonR models. Hyundai Motor India said it sold 37,450 units last month, up 3.4 per cent from 36,205 units in May 2014. The company’s Senior Vice-President (sales and marketing) Rakesh Srivastava said, “In a market experiencing low growth with decreasing contribution of rural and diesel vehicles sales, Hyundai volumes grew to 37,450 units…showcasing customers' changing preference towards brands delivering high aspirational value at attainable prices.”
Honda Cars India reported a marginal increase in its domestic sales at 13,431 units in May. It had sold 13,362 units in May last year. Domestic passenger vehicle sales from home-grown auto major Tata Motors grew 21 per cent to 11,138 units against 9,230 units in the same month last year.
“The growth for industry can be attributed to sustained positive sentiment coupled with new launches that keeps up buyers’ interest. While everything else is working out for the industry, rural pressures are still there. Factors like unseasonal rains, damage to crops and reports of delayed monsoon have impacted demand in the area,” Amit Kaushik, Associate Director at automotive consultancy firm IHS said.
German carmaker Volkswagen reported 56.83 per cent increase sales in India last month at 4,167 units, up from 2,657 units in May 2014. The sales have been driven mainly by the new Jetta sedan and hatchback Polo.
“We remain confident of continuing to improve our sales figures further over the coming months,” Volkswagen Group Sales India Director (Volkswagen Passenger Cars) Michael Mayer commented.
On the other hand, Mahindra and Mahindra saw a decline of 6 per cent in sales to 33,369 units. Ford India's domestic sales too decline 22 per cent to 4,726 units.
Kumar Kandaswami, Senior Director, Deloitte in India said, “Any rural slow-down will impact some manufacturers more than the others, given the nature of the portfolio and the strength of distribution. Typically, the products that will get impacted are the entry level hatchbacks in passenger cars and SUVs and the economy motorcycles”
Pointers:
Maruti, Tata and Volkswagen have record double digit growth in sales
Entry level customers are reported to be coming back as Maruti’s Mini (Alto & WagonR) car sales saw good growth
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“The growth for industry can be attributed to sustained positive sentiment coupled with new launches that keeps up buyers’ interest. While everything else is working out for the industry, rural pressures are still there,” said Amit Kaushik, Associate Director at automotive consultancy firm IHS.
Two-wheeler sales skid on rural slumpBy G.Balachandar
Even as the car market appears to be maintaining the momentum, two-wheeler market is slipping into low or negative growth curve mainly due to sluggish bike sales. While scooter category is still reporting growth, aided by urban markets, motorcycle sales are in the negative curve due to poor rural economic scenario. However, higher cc bike segment (above 250 cc) are reporting strong growth. Overall, bikes constitute about 67 per cent of Indian two-wheeler market.
Market leader Hero MotoCorp saw its total sales decline by 5.4 per cent. It sold 569,876 units in May this year as against 602,481 two-wheelers in the same month last year. Honda Motorcycle & Scooters India, second biggest player by volumes, has seen a three per cent rise in its domestic two wheeler sales at 353,440 units as against 342,136 units in May 2014. However, TVS Motor Company reported a modest growth three per cent at 175,533 units (169,671 units).
Royal Enfield, which sells bikes in the above 250 cc categories, continues to see the sales of its bikes zoom. It reported 42 per cent rise in May domestic sales at 34,615 units (24,509 units). Suzuki Motorcycle India registered a growth of 4 per cent at 33,827 units (32,117 units).
“Suzuki continues to experience positive growth in sales, even as the Indian economy struggles onto a recovery path. We have witnessed an upward growth trajectory since the launch of the Suzuki Gixxer and are confident that Suzuki will continue to experience this growth in the months to come,” Atul Gupta, Executive Vice President of Suzuki Motorcycle.
