October Auto Sales A Mixed Bag As Festive Buying Moderates

Indian automakers saw car sales slow down in October as festive buying tapered off even as sales of commercial vehicles continued to gather pace.

The country’s largest carmaker Maruti Suzuki Ltd. saw sales of smaller cars and mid-size sedans slow even as overall sales growth in October remain stable at 9.5 percent over last year as compared to a 9.3 percent rise in September. Tata Motors Ltd., the largest commercial vehicle manufacturer in the country, saw a 7 percent rise in commercial vehicle sales driven by increased production and demand. For two-wheeler manufacturers and tractor makers, October was a mixed bag.

“The auto industry has had a mixed month”, said Rajan Wadhera, President (Automotive) at Mahindra & Mahindra Ltd. in a media statement. Last year, all festivals were in October and the industry volumes had a high base, he added.

Passenger Vehicles

Maruti Suzuki reported single-digit growth in sales for the second consecutive month, as demand for its smallest cars and mid-size sedans slowed. Total sales stood at 1.46 lakh vehicles in October.

The mini segment, which includes cars like the Alto and WagonR, registered a 4.2 percent drop in sales to 32,490 vehicles. The mid-size segment, represented by Ciaz, saw a 35.4 percent decline in sales to 4,107 cars.

Tata Motors too saw flattish growth of 1 percent over last year to 16,745 units. M&M saw a 6 percent drop in utility vehicle sales to 22,040 units, while the passenger vehicles segment saw a 5 percent fall.

Among the unlisted manufacturers, the second largest carmaker Hyundai Motor India Ltd. reported a 0.8 percent decline in sales. Ford India too sold 43.8 percent fewer cars in India as the ramp-up for the introduction of a new model impacted wholesale sales. Toyota Kirloskar, however, saw a 6.5 percent rise in car sales.

Commercial Vehicles

Tata Motors reported strong commercial vehicle sales led by demand for its pickup trucks. Total commercial vehicle sales rose 7 percent to 32,411 units. Medium and heavy commercial vehicle sales rose 8 percent over last year to 11,391 units.

Sales for Tata Motors’ pickup trucks like the Xenon Yodha and ACE Mega XL went up 45 percent to 5,604 units. Intermediate and light commercial vehicle sales grew 7 percent. However, sales in the passenger carrier segment, including buses, fell 17 percent to 3,243 units.

M&M too reported a 7 percent rise in sales led by a surge in medium and heavy commercial vehicles. MHCV sales rose 59 percent while light commercial vehicles grew 17 percent.

Ashok Leyland Ltd. saw a fifth straight month of sales growth with a 3 percent rise in October. MHCV sales declined for the first time in four months, falling 5 percent over last year. This was, however, offset by a 29 percent growth in sales of light commercial vehicles.

Two-Wheelers

Eicher Motors Ltd., maker of Royal Enfield motorcycles, saw sales surge 18 percent in October. Its smaller engine capacity bikes (under 350cc) saw an 18 percent rise to 65,209 units. Bikes of over 350cc engine capacity rose 9 percent to 4,238 units.

TVS Motor Company Ltd. too saw volumes rise in October driven by scooters. Total sales went up 3 percent over last year to 3.17 lakh units. Scooter sales rose 15.7 percent led by demand for its Jupiter model. Motorcycle sales went up 3.2 percent to 1.25 lakh units.

In the unlisted space, Honda Motorcycles and Scooters India Pvt Ltd. saw total sales fall 5.2 percent to 4.6 lakh units. Suzuki Motorcycles India reported a record 22.3 percent rise in sales with 50,148 units.

Tractors

Farm equipment maker Escorts Ltd.’s sales rose 13.8 percent year-on-year in October, driven by strong export growth.

The tractor maker sold 10,001 units in the domestic market, a jump of 12.9 percent, while exports surged 83.8 percent to 204 units, the Faridabad-based company said in an exchange filing.

M&M’s tractor sales declined 11 percent to 40,262 units.

Exports

• Maruti Suzuki: Total exports went up 4.2 percent to 10,029 units
• Tata Motors: Exports fell 32 percent to 4,311 units
• Eicher Motors: Exports nearly doubled to 1,478 units
• M&M: Total exports fell 29 percent to 2,331 units
• TVS Motor: Exports grew 29.3 percent to 45,437 units