Companies

Hit by cash crunch, automakers post weak Nov sales

| | Updated on: Dec 01, 2016

Maruti Suzuki, Royal Enfield buck the trend

Except Maruti Suzuki India (MSIL) and few others who launched new models of vehicles, most automakers have been hit by government’s demonetisation drive, if the November sales numbers are an indicator.

“While we continue to see a good demand for our vehicles, the limitation on cash availability due to the recent demonetisation has affected retail in the auto industry, this month,” said Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, said.

Similarly, another home-grown company Mahindra & Mahindra said that although, demonetisation is a good and welcoming step in the mid to long term, it has dampened overall sentiments leading to postponed buying thereby resulting in a major dip in volumes during November.

“We expected an improved auto industry performance on the back of festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty,” Pravin Shah, Chief Executive (Auto Division), M&M, said.

In number terms, passenger vehicles leader MSIL sold 1.26 lakh units during the month, up 14 per cent as compared with 1.10 lakh units in November 2015.

Similarly, riding on the new Fortuner, Toyota Kirloskar Motor registered 10 per cent growth in November sales to 11,309 units against 10,278 units in the corresponding month last year.

“We are overwhelmed by the response it (Fortuner) has received with over 6,200 bookings already. This has also encouraged us to meet the demands and expectations of our customers as we have shipped close to 2,500 units of the new Fortuner to our dealerships across the country,” N Raja, Director and Senior Vice-President, Sales & Marketing, Toyota Kirloskar Motor, said.

Renault India and Volkswagen India also registered growth in sales during the month.

However, sales of Honda Cars India drastically fell down to 8,029 units even though it had launched new vehicles such as BR-V and Honda Accord Hybrid recently.

The company had sold 14,712 units in November 2015.

Ford India that has more focus in exports, sold 6,876 units last month against 8,773 units in same month last year.

In the two-wheeler segment also, most of the companies reported a marginal growth/decline, with a few exceptions like Royal Enfield that grew 39 per cent year-on-year.

In the commercial vehicle segment, most of the companies reported decline in sales.

Published on January 16, 2018

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