The Society of Indian Automobile Manufacturers (SIAM) has released the sales number for the month of August 2017 and the passenger vehicles industry seems to have had another successful year at least in terms of domestic sales. Passenger cars and Utility vehicles dominated by SUVs along with vans reported a sales growth of 13.76%. The car space grew by 11.80% and UVs grew by almost 20%. In the domestic market, car makers sold a total of 198,811 units in August 2016 as against 177,829 units in August 2016. UV sales clocked 78,664 units and vans saw monthly sales of 16,860 units. Global markets, however, saw less demand resulting in a decline in the overall exports. The car industry alone exported a total of 56,754 units last month as compared to 75,412 units exported in August 2016.
Top five automakers in August 2016:
Market leader Maruti Suzuki continued to dominate the Indian domestic market as the company sold a total of 151,270 units in the domestic market, about 26.12% more than what the company sold in the same month last year. The growth was backed by strong demand of the new Maruti Suzuki Dzire that was recently introduced in the local market. Over all the compact segment that also consists of the cars like Maruti Suzuki Swift, Maruti Suzuki Baleno, Maruti Suzuki Ignis etc saw sales rise by 62.4% as the company sold a total of 74,012 units in this segment. Maruti Suzuki Vitara Brezza and Maruti Suzuki Ertiga along with S-Cross dominated the UV space as it registered a growth of 27.6% by selling 21,442 units. The company also exported a total of 11,576 units last month.
Introduction of new-generation Hyundai Verna and the update on the Hyundai Xcent has helped Hyundai to register a growth of about 9% in the domestic market as the company sold 47,013 units in August 2017. However, Hyundai’s tag as the India’s largest exporter seems to be fading away as the company continues to report a decline in its exports. The change has been brought about by Hyundai’s renewed efforts to push local sales, limiting Hyundai’s ability to export.
Despite most of its high volume sellers being involved in the government’s cess flux, Mahindra still managed to post extremely strong sales figures having sold 19,325 vehicles in the domestic market, which reflects a growth of 5.91% as compared to August last year. Although, global demand was at a low with only 533 vehicles leaving the country from the Indian Marquee reflects a reason to worry at a startling decline of 47.8%. Even then M&M have managed, to make it to the top three with 21,623 total sales both in terms of domestic and export, reflecting its strong footing in the rural market.
Driven by the stellar success of the WR-V, Honda Cars India finds itself in fourth place with more than seventeen thousand domestic sales reported in August. A massive 24.56 per cent year-on-year growth with respect to 2016 is certainly a number to rejoice for the company that has been looking for a successful model beyond the City for a while now. In exports though, Honda Cars took a hit with only 575 vehicles being exported, falling almost 4 per cent since last year.
Not far behind Honda, Tata comes in fifth with cumulative domestic sales of 16,261. This reflects a growth of 11.53% over last year. Driven by new and exciting products including the likes of the Tiago, the Tigor and the Hexa, Tata Motors is putting in place the right strategy to grow in the young aspirational Indian market. With the Nexon Compact SUV just around the corner, things are set to get even more interesting.
A lot has been spoken last week at the SIAM’s Annual Convention about the auto sector needing a proper road map from scrapping policies to electrification of vehicles to taxation structure. The industry representing body of Society of Indian Automobile Manufacturers (SIAM) expressed its discomfort on frequent changes in policies and taxes that have caused a lot of fluctuation in sales and individual company’s product planning. Add to this the lofty and nearly fairy tale goal of going fully-electric by 2032, and it becomes clear how tough it is to operate in the volatile environment of India when it comes to policy-making.
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