Better than expected monsoons, reduction in fuel prices and a slew of new launches helped boost consumer sentiments with seven leading automobile manufacturers who declared their sales numbers on Saturday reporting a combined growth of 17.2 per cent to sell 2,06,455 units last month.
The sales tally was pushed up by Maruti Suzuki India Limited (MSIL), Hyundai Motor India Limited (HMIL) and Honda Cars India (HCI) which posted strong double-digit growth numbers. Maruti Suzuki posted a growth of 22.5 per cent to sell 1,10,405 units in July. While sales of mini cars Alto and WagonR went up by 31.3 per cent to 37,752 units, demand for compact cars Swift, Celerio, Ritz and DZire grew by 13.9 per cent to 48,381 units.
- Weak consumer sentiment: No festive cheer for carmakers on rising fuel cost, interest rates
- H1 passenger vehicle sales in the slow lane
- Auto sales rise 9.48% in September on new launches, lower fuel costs
- Easing inflation: Passenger vehicle sales up 8%
- Maruti Suzuki, Hyundai, Honda post sales growth in July; Mahindra & Mahindra slides
- Auto sales back on track in July
Korean rival Hyundai, too, scored well with new premium hatchback launches Elite i20 and sports utility vehicles Creta. Sales for the firm increased by 24.7 per cent to 36,500 units last month. “Hyundai’s new age product portfolio led by the newly launched SUV CRETA sustained the growth momentum with 24.7 per cent growth with a volume of 36,500 units,” said Rakesh Srivastava, senior vice-president (sales and marketing), HMIL.
At Honda Cars India, too, the newly launched Jazz drove up demand.
Honda sold 18,606 units last month, which is an increase of 18.4 per cent over 15,709 vehicles sold in July last year. As much as 36 per cent of the sales at 6676 units came from the Jazz.
Abdul Majeed, partner at PriceWaterhouseCoopers said, “OEMs with good portfolio in the small car segment and good penetration in the rural market have grown significantly. Hopefully with good monsoon across large of part of the country, the announced cut in the petrol and diesel price, the upcoming monetary policy, new launches and festive season should help Indian auto industry to grow this fiscal year”.
While Toyota grew sales by 1.2 per cent to 12,070 units last month, Volkswagen increased volumes by 18.2 per cent to 4,029 units on back of the new Vento.
Mahindra & Mahindra (M&M) with no new vehicles in its portfolio saw sales slide by 12.8 per cent to 14456 units in July. Pravin Shah, president & chief executive (automotive), M&M Ltd said, “With the advent of a good monsoon till date and reduction in fuel prices, we expect sentiments to improve, leading to overall growth in auto sales.”