Utility vehicles continued their good volume growth in the domestic market in July on the back of high demand for products like the Vitara Brezza, Creta and TUV 300 while sales of medium and heavy commercial vehicles declined as a result of lack of availability of freight from the agriculture and manufacturing sectors.
The volumes in the utility vehicle segment in July increased by 41.85% y-o-y to 64,105 units as the products from the top two auto makers Maruti and Hyundai have been performing exceedingly well. Maruti Suzuki’s Vitara Brezza has been selling 10,000 units per month while Hyundai’s Creta has seen good growth during the month. Other products like KUV 100 and TUV 300 have also been contributing to the growth in the segment.
Pravin Shah, president & chief executive (Automotive), M&M said, “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.
The passenger car segment during the same period grew by 9.62% y-o-y to 17,764 units, on the back of demand from the premium hatch back segment. Products like the Baleno and Elite i20 have been driving volumes in the segment.
Rakesh Srivastava, senior vice president, sales and marketing, Hyundai motor India said, “Hyundai’s new age product portfolio led by the newly launched Global SUV Creta sustained the growth momentum with 24.7% growth with a volume of 36,500 units. The tremendous response for the Creta, i20 Active & Elite i20 showcases the customers increasing preference and early adoption for game changer products offering novelty value in style, first in segment features and strong after sale assurances.”
Medium and heavy commercial vehicles declined during the month by 7.61% to 21,307 units as fleet owners have stopped adding vehicles due to the significant fall in the rentals coupled with increasing diesel prices.