The Hindu Business Line : Auto sales sustain growth in June

New Delhi, July 10 Domestic vehicle sales during June have been on a growth trajectory across most categories owing to the lower numbers posted by companies during same period last year. But the Society of Indian Automobile Manufacturers, which released the monthly sales report, cautioned of an impending slowdown in the coming months.

Passenger car sales languished, recording a growth of 6 per cent at 99,738 units. Maruti Suzuki sales marched marginally 2.41 per cent at 48,935 units and Hyundai grew 34 per cent at 21,877 units. Honda Siel Cars India sold 4,438 units of its car models like Civic, City and Accord grew 3.69 per cent. Car makers like Maruti, Tata Motors lowered discounts on select models as creeping interest rates, fuel prices and inflationary pressures failed to entice buyers.

Medium and heavy commercial vehicles sales at 21,755 units rose 8.47 per cent last month and volumes of commercial vehicles segment leapt 20.08 per cent at 18,569 units.

“The light commercial vehicle segment is mainly being driven by the sub-one tonne segment. But the growth recorded by the medium and heavy commercial vehicle segment is difficult to believe as due to unavailability of finance, retail volumes are moving very slowly,” said Mr R. C. Mangal, Senior Vice-President, Marketing, Asia MotorWorks Ltd. He said the increase in prices of commercial vehicle and fuel prices had hit the transporters hard.

Two-wheeler sales

In June, two wheeler sales increased 6.45 per cent at 6,01,941 units. Motorcycle sales surged 8.25 per cent. Hero Honda which sold 2,77,654 units recorded an increase of 16.56 per cent in sales. At the same time, Bajaj motorcycles sales dipped 2.5 per cent and for the country’s third largest two-wheeler company, the decline was at 7.78 per cent.

However, in the scooters and scooterettee category volumes went down by 2.12 per cent led mainly by TVS, which reported a massive fall of 20 per cent in sales at 19,825 units. Most other companies like Honda Motorcycles and Hero Honda continued to ride on a growth mode.

“There is no slowdown in the scooters segment. We had supply constraints for certain parts due to which we were unable to produce the same volumes. This has reflected in our sales going down,” said Mr R. Dilip, Vice President, Marketing, TVS Motor Company.

Honda Motorcycles and Scooters Marketing Head, Mr N. K. Rattan also explained, “Scooters being usually a second vehicle in the house is less dependent on finance. Even as negative forces like interest rates, fuel price and increasing cost of the vehicle remain, these factors are not pulling down the demand.”

In the April-June period, domestic passenger vehicles sales at 401,495 units was up 15 per cent over the 348,883 units sold in the same period last year; commercial vehicles were up 10 per cent at 109,485 units (99,901 units); three-wheelers sales were flat at 85,409 (85,718); and two-wheelers up 7 per cent at 18,65,337 (17,40,828). Total vehicle sales were up 8 per cent at 24,61,726 (22,75,330).