Despite the month being marked by Sharaadh, considered inauspicious for purchases, major car makers such as Maruti Suzuki, Hyundai and Honda posted robust sales growth in the country during September, helped by roll-out of new models, indicating a positive sales outlook during the upcoming festive season.
Going forward, the rate cut by RBI earlier this week is also likely to help boost sales.
Hyundai Motor India registered its highest ever monthly domestic sales at 42,505 units as against 35,041 units in September 2014, an increase of 21.3 per cent. The company’s Senior Vice-President (Sales and Marketing) Rakesh Srivastava said growth was driven by its premium brands like CRETA, Elite i20, i20 Active and Grand.
Honda Cars India also reported 23 per cent increase in its domestic sales at 18,509 units in September. It had sold 15,015 units in the same month last year.
“ If the majority of the rate cut is passed on to the customers by the lending institutions, it will bring back the momentum in auto sales especially in the upcoming festival season, M&M Chief Executive (Automotive Division) Pravin Shah. ”
Even though manufacturers like Mahindra & Mahindra continued to see some pressure with decline in sales, analysts and industry expects to see a growth of about 15-17 per cent during the festive season, which generally accounts for 30 per cent of the annual sales volume for the automobile industry.
The growth in sales comes in despite September being marked by Shraadh. In contrast, last year the Hindu festival of Navratras, which attracts a lot of buyer, began on 25 September.
M&M's domestic sales were down 6 per cent to 39,693 units last month as against 42,408 units in September last year. “While the auto industry has witnessed a slow and fragmented recovery, the recent interest rate reduction by the RBI is bound to infuse optimism,” M&M Chief Executive (Automotive Division) Pravin Shah said.
Tata Motors' passenger car sales in September were higher by 5 per cent at 10,226 units, as compared to 9,766 units in same period of last year. Its domestic passenger vehicles sales were flat at 11,774 units as against 11,931 units in the same month of previous year.
Ford India's domestic sales in September stood at 8,274 vehicles against 6,786 units, up 22 per cent in the same month last year.
Country's largest two-wheeler Hero MotoCorp reported a marginal increase in total sales at 6,06,744 units in September, while Honda Motorcycle & Scooter India (HMSI) reported 2 per cent decline in total sales at 4,30,732 units.
Yamaha Motor India reported 13 per cent increase in domestic two-wheeler sales at 67,267 units in September. Royal Enfield, the two-wheeler division of Eicher Motors, posted sales of 43,741 units in the domestic market, up 59 per cent, from 27,540 units in the same month last year.
