Restricted finance availability, high interest rates and increased prices seem to have taken its toll on the four-wheeler auto companies as the country’s largest and second largest car manufacturer, Maruti Suzuki and Hyundai Motor India, registered almost flat growth rates for the month of July while Tata Motors recording a decline in total sales. However, against expectations India’s two largest two-wheeler manufacturers Hero Honda and Bajaj have witnessed robust growth for the month.
Sales of Maruti Suzuki for the month of July stood at 52,911 units as against 52,839 units in the same month a year-ago, a marginal increase of 0.1%. On the other hand, the sales of Maruti800 dipped by 17%. The company sold 4953 units of the legendary model this year as against 5970 units last year.
Maruti registered the maximum growth in the A3 segment while the sales of its cars like Alto, Zen, Estillo and Swift remained almost flat. The company’s exports grew 11.1% at 5632 units. However, the country’s second largest car manufacturer, Hyundai Motor India Ltd (HMIL), reported a 60% rise in exports at 21,086 units though its domestic sales also remained flat for July as compared to same period last year.
HMIL sold a total of 15,066 units in July against 15,003 units in the same month last year, a marginal increase of 0.4%. “It has been a challenging month for the entire industry with the combined effects of increase in interest rates, hike in fuel prices and inflationary pressures affecting market sentiments,” said Arvind Saxena, senior VP, marketing and sales, HMIL.
Tata Motors witnessed a growth of 8% in commercial vehicles in July 2008 in the domestic market at 22,381 units as compared to 20,705 vehicles sold in July last year. However, its domestic sales of passenger vehicles declined by 13.9% in July this year at 14,652 units. The company’s exports at 3,696 vehicles in July 2008 also declined by 16%.
Contrary to the market trend, General Motors India reported 25% increase in July sales at 5,706 units against 4,570 units during the same month last year. The break up of the company’s sales figure for July suggests that its robust growth in sales was driven by Chevrolet Spark.
Strengthening its share in the domestic motorcycle market at around 55%, India’s largest two-wheeler maker Hero Honda reported a 39.8% jump in sales in July at 281,317 units as against 2,01,191 units in the corresponding month last year.
However, Bajaj Auto registered a single digit growth rate for the month. The country’s second largest two-wheeler sold 1,68,836 motorcycles in July as against 1,59,881 motorcycles in the same month last year, an increase of 5.6%. However, the company’s scooters sales continue to show a decline.
