Car makers witnessed another strong month of vehicle sales in September in the domestic market, on the back of demand for utility vehicles and premium hatchbacks and substantial increase in vehicle dispatches to dealerships, as manufacturers gear up for the festival season, reports fe Bureau in Mumbai.
Maruti Suzuki — the country’s largest car manufacturer — registered a whopping 29.4% increase in volumes during September at 1,37,321 units, as demand for the Vitara Brezza, Baleno and Ciaz continues to be robust, besides recovery in volumes of the small car segment. This is probably the highest growth in volumes achieved by the company in the last five years in the domestic market.
The volumes in the mini car segment, which declined in the past six months, increased by 24.8% year-on-year, while the utility vehicles segment saw monthly volumes increase by 191% y-o-y on the back of strong demand for the Vitara Brezza.
The Vitara Brezza is a compact SUV. Both the Baleno (a premium hatchback) and the Vitara Brezza are commanding a waiting period of at least six months.
American car maker Ford registered a 9% y-o-y increase in domestic volumes at 9,018 units, while German car Volkswagen’s volumes increased by 22% y-o-y to 3,929 units on the back of increasing demand for the compact sedan Ameo. Japanese car make Honda continues to face decline in domestic volumes, as volumes decreased by 18.77% y-o-y during the month.
Country’s largest SUV manufacturer Mahindra and Mahindra (M&M) saw a 5% y-o-y increase in volumes at 20,537 units on the back of good demand for it two new compact SUVs— TUV 300 and KUV 100.
“A good and near normal spread of monsoon, as well as new vehicle launches, have helped the auto industry perform positively. We do hope that the upcoming festive season brings in better demand due to improved sentiments. We are happy to have achieved an 11% growth during the first six months of the current financial in spite of the various uncertainties and challenges,” said Pravin Shah, president and chief executive (automotive), M&M.
Another major player in the SUV segment, Toyota registered a 6% y-o-y increse in volumes at 12,067 units as a result of good demand for the new Innova Crysta and revocation of the suspension on the registration of diesel vehicles in the National Capital Region.
“Positive customer sentiments and festival seasons will drive the growth. New models are surely pushing customers to replace their old vehicles. Post the festive season, growth across segments to a large extent will depend on the increase in private investments and growth in the overall economy,” said Abdul Majeed, partner, PriceWaterhouse Coopers.
On the mediun and heavy vehicles front, Ashok Leyland saw volumes nosedive by 25% to 8,963 units as lack of demand for freight from manufacturing agriculture and infrastructure sector and increase in diesel prices, which are keeping the fleet owners away from buying new vehicles.
Tata Motors registered 19% year on year increase in the volumes of the light commercial vehicles (LCVs) while in the medium and heavy commercial vehicle segment volumes continue to decline but the company did not share any data in that regard. In the passenger vehicle segment, volumes increased by 24% y-o-y to 14,601 units as consequence of healthy demand for the new offering Tiago.