Weak demand impacts April auto sales
07 May 2014
Weak demand has impacted auto sales in April, with many of the major players such as Maruti Suzuki India, Toyota Kirloskar Motor and General Motors India posting a decline in domestic sales.
However, companies such as Hyundai Motor India Ltd, Honda Cars India and Ford bucked the trend, riding on the back of their new models.
Maruti Suzuki posted a 12.6 per cent decline in sales, with it selling 79,119 units during the month under review.
The New Delhi-based company's popular mini cars segment comprising M800, Alto, A-Star and WagonR fell by 25.4 per cent to 26,043 units. Sales of its compact sedan Dzire declined 17.7 per cent to 16,008 units.
However, premium compact cars Swift, Estilo, Ritz saw 9.9 per cent rise in sales to 23,659 units.
The company also registered an increase in exports by 4.4 per cent to 7,077 units during the reporting month.
Mahindra & Mahindra
Similar was the case at Mahindra & Mahindra Ltd (M&M). The Mumbai-based company's sales fell 12 per cent to 36,274 vehicles in April 2014, compared with 41,432 units sold during the same month a year ago.
''It is unfortunate that the auto industry has not seen an upturn over the last couple of months in spite of a reduction in excise duty. We do hope that post the general elections, sentiments will improve leading to a better economic situation and hence increased demand,'' said Pravin Shah, Chief Executive, Automotive Division at M&M.
It sold 18,148 passenger vehicles (20,748 units in April 2013), while its domestic sales fell to 34,107 units (39,902 vehicles). The four-wheeler commercial segment sold 11,677 units, while the three-wheeler segment clocked 3,532 units in April 2014. M&M's exports rose 42 per cent to 2,167 units, from 1,530 vehicles sold during the same period a year ago.
Mahindra & Mahindra Ltd's Farm Equipment Sector (FES) sold 19,895 tractors in April 2014, a 10.37 per cent declined from 22,196 units sold during the same month a year ago.
Its total tractor sales (domestic and exports) during April 2014 stood at 20731 (23202) units, while exports stood at 836 units.
"Unseasonal rains and hail during March in some parts of the country has impacted sentiment leading to lower sales of tractors in April. We do hope that the onset of monsoon brings cheer to farmers and the agriculture industry alike,'' said Rajesh Jejurikar, chief executive, Farm Equipment and Two Wheeler Division at M&M.
Tata Motors' total sales (including exports) of commercial and passenger vehicles fell 34 per cent to 33,892 vehicles (51,160 units sold in April last year). The Tata group's domestic sales of commercial and passenger vehicles fell 36 per cent to 30,670 units (47,595 vehicles), it said in a statement.
Its commercial vehicles sales in the domestic market fell 36 per cent to 23,229 units (36,025) and that of light commercial vehicles (LCV) 43 per cent to 14,804 units, while medium and heavy commercial vehicle sales fell 16 per cent to 8,425 units.
Passenger vehicles sales stood at 7,441, a 36 per cent fall over 11,570 vehicles sold in April 2013.
The Sumo, Safari, Aria and Venture range sales were 1,788 units, 33 per cent decline over 2,652 vehicles, sold in April last year.
The company exported 3,222 units in April 2014, registering a 10 per cent decline, compared to 3,565 vehicles in April last year.
Toyota Kirloskar Motor
Toyota Kirloskar Motor (TKM) sold 8,328 units in April 2014 compared with 10,456 units in April 2013.
The company exported 766 units of Etios series last month.
In the domestic market TKM sold 7,562 units in April this year, as against 9,007 units sold during the same month a year ago.
''We resumed normal production on April 22 and were carrying out limited operations until then. We thank our customers for their support and understanding during this difficult time. It is our endeavor to make the deliveries of vehicles on a timely basis,'' said N Raja, Director and senior vice president (sales and marketing).
Honda Cars India Ltd (HCIL), a manufacturer of premium cars in India, posted a 30 per cent rise in domestic sales in April 2014. It sold 11,040 vehicles (8,488 units) in the domestic market during the month under review.
HCIL also exported a total of 402 units during April 2014.
''We have started the financial year 2014-15 on a positive note and would like thank our customers for the fantastic response to the all new Honda City. We also celebrated the first anniversary of Honda Amaze by introducing the anniversary edition and we are confident of its good sales in this fiscal as well,'' Jnaneswar Sen, Senior Vice President (Marketing & Sales) at Honda Cars India said.
Nissan Group of India's sales quantum leaped to 5,301 vehicles in April 2014 as against 1,239 vehicles in April 2013. Datsun GO contributed over 50 per cent to Nissan Group's April 2014 sales with 2691 units.
''We are witnessing an encouraging growth in our sales. We ended FY13 on a high and have begun the new financial year with a healthy 328 per cent year-on-year growth for the month of April. Our focus is to continue this trend going forward,'' said Kenichiro Yomura, president, Nissan Group of India.
Bajaj Auto's total sales fell 4 per cent in April to3,31,529 vehicles (3,44,178), while its commercial vehicle sales fell 26 per cent to 31,893 (43,351).
The Pune-based company's motorcycle sales fell to 2,99,636 units (3,00,827). However, exports rose 16 per cent to 1,50,714 vehicles (1,30,329 units in April 2013) during the month under review, Bajaj Auto said in a statement.
TVS Motor Company sold 190,683 vehicles in April, a 15 per cent rise from 165,214 units recorded during the same month of last year, while its total exports grew by 41 per cent to 30,650 units (21,714).
The company's two-wheeler exports rose 37 per cent to 24,272 units (17,708 units in April 2013), while total two-wheeler sales rose by 14 per cent to 183,179 units (160,502 units). Its domestic two-wheeler sales grew 11 per cent to 158,907 units (142,794 vehicles). Scooters sales grew by 55 per cent to 46,069 units (29,692 vehicles).
Motorcycles sales grew by 9 per cent to 73,636 units (67,849 vehicles), while the company's three-wheeler sales rose 59 per cent to 7,504 units (4,712 vehicles).
Yamaha Motor India
Yamaha Motor India Sales posted a 42 per cent rise in domestic sales at 51,158 units (35,927) in April 2014.
''This month indeed has been a good month for us as we were able to witness a brisk growth due to our superb product line-up and customer centric activities,'' said Roy Kurian, vice president (Sales & Marketing) at Yamaha Motor India.