Economy

Auto sales growth in April modest at 10%

Roudra Bhattacharya New Delhi | Updated on November 17, 2017 Published on May 10, 2012

autosales

Car sales lowest in 10 years





The total auto sales growth in April remained at the same levels as March at 10 per cent. However, both passenger and commercial vehicle segments saw slower growth compared to last month.

The boost to industry volumes came from improved performance from the two and three-wheeler segments on a monthly basis.

Passenger vehicle sales

Passenger vehicle (PV) sales, which include cars, utility vehicles (UVs) and vans, rose 9 per cent in April. Slower than the 21 per cent (2.92 lakh units) growth in March, this is attributed to a price increase and advanced buys last month, after the excise duties went up with the Budget announcements.

“Car sales (3 per cent growth) saw the lowest growth for the last 10 years. The price sensitive small car segment dipped, while the growth came from the new launches in mid-size cars such as the new Maruti Dzire, Honda City and Hyundai Verna,” Mr Vishnu Mathur, Director-General, Society of Indian Automobile Manufacturers, said.

Market leader Maruti Suzuki saw sales in April rise 4 per cent, while Tata Motors saw a 3 per cent drop. Hyundai, however, posted an 11 per cent growth. Continued traction for diesel models saw the UV sub-segment, recording a 47 per cent growth (29,008 units), primarily led by a 33 per cent higher sales for Mahindra.

Commercial vehicle sales

Commercial vehicle (CV) sales also slowed down in April with a 4 per cent rise — the slowest in the last two years. Last month, CV sales were up 15 per cent growth (90,415 units). “Medium and heavy CVs saw a 12 per cent dip as transporters waited for a reduction in excise duties,” Mr Mathur said.

CV sales are likely to get a boost over the next few months, with the Finance Minister reducing the Excise duty on chassis to 14 per cent from 15 per cent on Tuesday. The industry though had asked for a 2 per cent cut, after the excise had been hiked from 10 per cent (plus Rs 10,000 additional duty) to 15 per cent in March.

Two-wheeler sales were up 11 per cent in April (had grown 8 per cent in March). This was led by Hero MotoCorp, posting its highest-ever monthly sales at 5.51 lakh units (up 7 per cent).

Three-wheeler sales arrested March's sharper sales decline of 9 per cent, with a smaller 5 per cent drop in April. Passenger three-wheelers are likely to face rough weather for a while, with many cities stopping the registration of new vehicles.

>roudra.b@thehindu.co.in

Published on May 10, 2012
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