Car sales may have risen an impressive 17.47% year-on-year in July spurred by new launches from Maruti Suzuki and Hyundai Motor but the auto sector stagnated as sales stayed virtually flat, report fe Bureaus in New Delhi and Mumbai. Indeed, while Maruti did well to record volumes of 110,405 units in the home market, it came off a low base of 90,093 in July 2014.
Both Hero MotoCorp and TVS reported a drop in motorcycle volumes, reflecting weak purchasing power especially in rural markets. The Hero management, however, claimed retail volumes had been better than despatches. Analysts are hopeful demand will look up in the festive and wedding seasons ahead.
Interestingly, Honda Motorcycle and Scooter India reported a sharp fall in motorcycle sales but a 20% y-o-y increase in scooters.
The CV cycle seems to be turning with both Tata Motors and Ashok Leyland reporting good M&HCV numbers.
However, Ravi Pisharody, president, commercial vehicles at Tata Motors, recently cautioned that while volumes have been running ahead of the targeted 10-15%, most purchases of trucks were being driven by replacements.