Auto’s cup of woe
Automobile sales continued to decline in September on a year-on-year (YoY) basis, but manufacturers found some cause for cheer. Among these were some new launches and the recent corporate tax cut by the government, the benefits of which were passed on to buyers by some companies.
“Towards the end of the month (September), there was an encouraging response in terms of customer footfalls. The customers have responded well to our festival offers as reflected in 11 per cent more retail sales in September compared with August. However, the industry continued to decline in September,” said Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd.
Similarly, N Raja, Deputy Managing Director, Toyota Kirloskar Motor, said: “The consumer sentiment continued to be subdued in September which has reflected in the sales slowdown in the industry. Thanks to the Navratri and Diwali festival sparkle around, we expect that consumer demand will see the much-needed revival resulting in better retails.”
Passenger car market leader Maruti Suzuki India reported sales of 1,10,454 units in September, which is down by 27 per cent against the 1,51,512 units sold in September last year. The company had announced a reduction of ₹5,000 on some select models to pass on the benefits of the corporate tax cut.
The second largest car-maker, Hyundai Motor, too, saw its sales decline by 15 per cent YoY during September to 40,705 units (47,781 units). ‘Harrier’ maker Tata Motors reported a 47 per cent decline in sales to 24,279 units (46,169 units). Honda Cars’ sales plummeted by 37 per cent to 9,301 units (14,820 units).
Rajesh Goel, Senior Vice-President and Director-Sales and Marketing, Honda Cars India, said: “While the market remained tough in September, the auto sales saw an uptick from August, which is a positive sign. We hope the consumer sentiment will improve further during the ongoing festival season and help the sales momentum.”
Two-wheeler sales
In the two-wheeler segment, market leader Hero MotoCorp sold 6,12,204 units, down 20 per cent YoY compared with 7,69,138 units in September last year, but said it has grown month-on-month by more than 12 per cent.
“Growth in the market is driven by first-time buyers, and to attract this segment of customers, we have introduced a host of special schemes including low down-payment, aggressive interest rates and easy EMIs, apart from exchange offers,” said Sanjay Bhan, Head of Sales, After-Sales & Parts, Hero MotoCorp.
‘Activa’ maker Honda Motorcycle & Scooter reported a 12 per cent decline in its domestic sales YoY to 4,55,892 units (5,20,390 units). Bajaj Auto, TVS Motor and Royal Enfield also reported decline in sales by double digits .
The only company that reported positive numbers was Suzuki Motorcycle India, whose sales were up 2 per cent YoY to 63,382 units (63,140 units).
In the commercial vehicle segment, major companies including Ashok Leyland, Tata Motors and Volvo Eicher reported YoY decline in sales with higher double digits.