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The upcoming festival season has turned the automobile companies optimistic even as sales picked up in August, riding on the back of a good monsoon and positive rural sentiments.
In the passenger vehicle segment, market leader Maruti Suzuki India reported sales of 1.51 lakh units in the domestic market in August, up 26 per cent, compared with around 1.20 lakh units in the corresponding period last year.
The second largest company, Hyundai Motor India (HMIL), recorded 9 per cent growth year-on-year (YoY) to 47,103 units during the month, against 43,201 units in August 2016.
“The strong acceptance of the next-gen Verna with more than 7,000 bookings within 10 days of launch, along with good demand for Grand i10, Elite i20 and Creta in a market fuelled with speculation on the GST cess increase and challenges posed by floods in many States is a positive indication. With the monsoon spread and a good product portfolio, we foresee strong buying in the festival period,” said Rakesh Srivastava, Director, Sales and Marketing, HMIL.
Honda Cars India also recorded a 25 per cent jump Y-o-Y in its monthly sales to 17,365 units last month compared with 13,941 units in August 2016.
However, the Japanese subsidiary Toyota Kirloskar Motor reported a decline of 6 per cent Y-o-Y in sales to 12,017 units in August against 12,801 units last year.
Ford Motor India also reported a 9 per cent decline in sales Y-o-Y to 7,777 units compared with 8,548 units in August last year.
Among domestic players, Mahindra & Mahindra (M&M) recorded 6 per cent growth in passenger vehicles sales to 19,325 units during the month, compared with 18,246 units in August last year.
“This upsurge in demand has been due to good monsoons and rural penetration. Our brands continue to gain traction despite several external challenges. As we get into the festival season, we are confident of good growth,” said Rajan Wadhera, President, Automotive Sector, M&M.
Similarly, Tata Motors, on the back of new launches like Tigor and Hexa, reported sales of 14,340 units in August, up 10 per cent, against 13,002 units in August 2016.
In the two-wheeler segment, market leader Hero MotoCorp reported a growth of 7 per cent to more than 6.61 lakh units in August, against 6.16 lakh units in the corresponding month last year.
The second largest two-wheeler company Honda Motorcycle & Scooter is closing the gap by selling 5.86 lakh units in August, up 26 per cent, compared with 4.66 lakh units in August last year.
Tamil Nadu-based TVS Motor Company and Royal Enfield also recorded double-digit growth.
In the commercial vehicle segment, most companies, including Ashok Leyland, M&M and Tata Motors, also registered double- digit growth.
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