Auto sales: M&M, Ford, Honda, Hero beat back year-end blues

Jan 01 2013, 20:20 IST
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Despite tough biz environment, we have seen record exports and sustained customer interest. (Reuters) Despite tough biz environment, we have seen record exports and sustained customer interest. (Reuters)
SummaryDespite tough biz environment, we have seen record exports and sustained customer interest.

It was a mixed bag for the auto industry in the last month of 2012 with Mahindra & Mahindra, Ford, Honda Cars and Hero posting growth, while Hyundai Motor, Toyota Kirloskar and TVS saw their domestic sales fall during the month that is usually low-key for the sector.

Sales are generally low in December as customers stay away from new purchases to avoid losing out on re-sale when the year of manufacture comes into consideration. In December 2012, the country's second-largest car maker Hyundai Motor India recorded a decline of 9.55 per cent in sales in the domestic market at 26,697 units compared to 29,516 units in the year-ago period.

Homegrown auto major M&M's total sales of passenger vehicles including Scorpio, XUV500, Xylo, Bolero and Verito stood at 22,761 units, as against 19,341 units in December 2011 -- up 17.68 per cent.

Mahindra & Mahindra Chief Executive (Automotive Division) Pravin Shah said: "High interest rates, rising fuel prices and an overall slowdown in economic growth has kept consumer sentiment low during 2012. This is also evident in the auto industry sales performance for December, which traditionally has been a lean month."

Car maker Ford India sold 6,517 units in December 2012 in the domestic market as against 5,978 units sold during the same month of the previous year, up 9.02 per cent.

"Despite a tough business environment, we have seen record exports and sustained customer interest in December," Ford India President and MD Joginder Singh said.

Honda Cars India reported nearly four-fold increase in its total sales for December 2012 at 4,242 units. It had sold 1,072 units in the same month previous year.

Toyota Kirloskar Motor posted 24.31 per cent decrease in its car sales at 12,071 units in last month compared to 15,948 units in the corresponding month in 2011.

TKM Deputy Managing Director and COO (Marketing and Commercial) Sandeep Singh said: "Though we are satisfied with the overall growth in our sales volume of last year, the passenger car market continues to be slow, as has been in the last few months."

The company hopes that the new year will usher in good times with economic revival and better market sentiments, he added.

General Motors India reported 21.82 per cent decline in sales at 7,067 units last month. It had sold 9,039 units in the same month of 2011.

"Despite offering various schemes on purchase of every car, market continues to remain depressed on account of various negative

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