Maruti Suzuki, Hyundai sales up in June as excise duty cut propels growth

Jul 01 2014, 19:47 IST
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Yet others such as General Motors India and Tata Motors reported decline in their domestic sales during the month. Yet others such as General Motors India and Tata Motors reported decline in their domestic sales during the month.
SummaryYet others such as General Motors India and Tata Motors reported decline in their domestic sales during the month.

Kirloskar Motor reported 9 per cent increase in domestic sales at 12,010 units in June as compared to 11,010 units in same period of last year.

Mahindra & Mahindra domestic sales also rose marginally at 36,457 units last month as against 36,207 a year earlier.

"We have achieved a marginal growth in our sales in June 2014 and do hope that the auto industry will continue to stay in a positive zone," M&M Chief Executive (Automotive Division) Pravin Shah said.

The recent announcement by the government of an extension in the lowering of excise duty will provide a fillip leading up to the festive season, he added.

In February, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 per cent from 12 per cent.

It was reduced to 24 per cent from 30 per cent in the case of SUVs, 20 per cent for mid-sized car from 24 per cent and 24 per cent for large cars from 27 per cent.

The upswing, however, wasn't visible in the sales of General Motors India which reported 21.33 per cent decline in domestic sales at 5,172 units last month as against 6,575 units a year earlier.

"Customer sentiment continues to remain negative even with price reduction on account of the continuation of the excise duty cuts till the end of this year," General Motors India Vice President P Balendran said.

Going by the market scenario, the company expects the challenging times to continue as the general economic conditions have not improved, he added.

Likewise, Tata Motors also saw its domestic sales decline by 29 per cent in June at 34,743 units as compared to 48,716 units in the same month of last year.

Tata Motors said its passenger vehicles sales in June were down 33 per cent at 7,911 units as compared to 11,804 units in the same month last year.

In the two-wheeler segment, Yamaha reported 14.35 per cent increase in domestic two-wheeler sales at 40,666 units in June from 35,561 units in the same month of the previous year.

Similarly, Honda Motorcycle & Scooter India reported 28.29 per cent rise in sales at 3,23,224 units in June compared to 2,51,936 units in June 2013.

Commenting on the June sales, Maruti Suzuki India Chief Operating Officer (Marketing & Sales) Mayank Pareek said that the company's sales in June reflect "that the pent up demand is converting to sales".

"While

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