July 2015 proves better for the auto industry

Falling interest rates, fuel costs, low base and an improvement in consumer sentiment helped automobile manufacturers in India post improved sales figures in July 2015 as compared to last year, same month.

Maruti Suzuki, the major passenger car manufacturer posted a healthy growth. July sales grew by 20.1 percent to 121,712 units from  101,380 units in the corresponding month of 2014. The company’s domestic sales rose by 22.5 percent at 110,405 units. However, exports  marginally rose by 0.2 percent to 11,307 units.

Hyundai Motor India’s sales rose by 5 percent to 50,408 units, up from 48,014 units sold in the same period in 2014. As per Rakesh Srivastava, senior vice president for sales and marketing, HMIL, “The tremendous response for the Creta, i20 Active and Elite i20 showcase customers increasing preference and early adoption for game changer products offering novelty value in style, first in segment features and strong after sale assurances.” The domestic sales grew by 24.7 percent to 36,500 units. However, exports for Hyundai fell sharply to 13,908 units in July, which is a decline of 25.8 percent.

Another Indian automobile giant, Tata Motors ended July 2015 with a marginal growth, with a gain of one percent in its total sales at 40,154 units against 39,629 vehicles sold during the same month in 2014. Domestic sales, however, registered a decline of one percent during the period at 35,076 units compared to 35,266 vehicles sold during July 2014. Exports grew by 16 percent at 5,078 units in July 2015, compared to 4,363 vehicles in July 2014.

Mahindra & Mahindra did not have a very good month as they closed last month with sales coming down by 3 percent as compared to July 2014.The company sold 34,652 units last month down from 35,567 units sold in July 2014. Pravin Shah, president and chief executive (automotive) ,”While the auto industry is currently seeing muted growth, we do believe that the launch of some exciting new products will help it turn the tide, in addition, with the advent of a good monsoon till date and reduction in fuel prices, we expect sentiments to improve, leading to overall growth in auto sales.”

Toyota Kirloskar Motor sold 12,070 units in July 2015 compared to 11,921 units, registering a one percent growth in the domestic market.
The total sales stood at 13,699 units in July 2015 and exported 1,629 units of Etios series.

Honda Cars India registered high sales growth of 18 percent during July. The  car manufacturer’s domestic sales grew to 18,606 units in July from 15,709 units in the corresponding month last year.

In the two wheeler segment, Royal Enfield showed a growth of 49 percent in July at 40,760 units sold over the corresponding period last year when it had an off-take of 27,314 units. This growth was followed by Suzuki Motorcycle, registering a 33 percent increase in their July 2015 sales at 36,081 units from 27,118 units sold in the same month last year.

Source: ETAuto.com