Auto sales: Festive season brings cheer to carmakers in September

Car sale volumes have continued to improve for carmakers after June, when the firms had posted poor sales figures owing to the de-stocking at the dealerships ahead of the transition to the goods and services tax in June.

By: ENS Economic Bureau | Mumbai | Updated: October 2, 2017 1:50 am
Car sales, sale of cars, festive season, rise in sale of cars, Representational photo

The festive season brought cheer to the auto companies in September, as they posted a robust double-digit sales growth in the domestic market. After Navratri brought a huge turnaround to retail sales, car makers have begun to dispatch large volumes to the dealers, in expectation of bumper Diwali sales.

Volumes have continued to improve for carmakers after June, when the firms had posted poor sales figures owing to the de-stocking at the dealerships ahead of the transition to the goods and services tax in June.

The second-largest car maker in the country, Hyundai, posted its best ever monthly numbers at 50,028 units, up 17.4 per cent against a year ago, thanks to its new Verna and continued strong demand for the Creta, Elite i20 and Grand i20.

Maruti Suzuki witnessed strong growth as sales grew by 10 per cent to 1,50,521 from 1,37,321 units last year. Owing to the start of its Gujarat plant, and the launch of its latest Dzire, the compact car segment grew 44 per cent in September. While the Gujarat plant’s first line has started manufacturing the Baleno, work on the second line is still on.

With a growth of 18 per cent, Mumbai-based Tata Motors recorded the highest passenger vehicle sales numbers since November 2012 at 17,286 units. The firm said this was due to encouraging response across the country for its recently launched compact-SUV, the Nexon.

Tata Motors’ medium and heavy commercial vehicle sales too continued to grow by a strong double digit as the supply of BS IV (Bharat Stage 4) parts increases and the freight rates improve as fleet owners try to meet the peak festival season demand.

The company’s M&HCV volumes rose by a strong 25 per cent to 12,259 units against the 9807 units in the year-ago period.

“…our M&HCV sales witnessed 25 per cent growth in volumes backed by a strong customer acceptance of our SCR technology and the continued ramp up of our BS4 vehicles production,” said Girish Wagh, head — commercial vehicle business unit, Tata Motors.
Meanwhile, the Indian niche motorcycle maker, Royal Enfield reported a 22 per cent rise in its volumes, selling 69,393 units.

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