Automobile sales in April displayed a healthy trend with six leading players that released sales numbers on Tuesday recording year-on-year growth between 6% and 86%.
Automobile sales in April displayed a healthy trend with six leading players that released sales numbers on Tuesday recording year-on-year growth between 6% and 86%. Four of the six players posted growth in total volumes of over 20%. In the passenger vehicles segment, while Mahindra & Mahindra (M&M) and Tata Motors saw sales improve over their performance in March, Maruti Suzuki India witnessed a slower growth.
In the utility vehicles (UVs) segment, M&M staged a comeback with a pick-up in growth to 11%, backed by strong performance in rural and urban markets. The company sold 20,371 units in April 2018 as against 18,363 units in April 2017. In contrast, Maruti Suzuki India, which has been eating into M&M’s UV market share, barely eked out any volume growth in April with a 0.8% increase to 20,804 units, compared to the same month in the previous year.
“Our growth momentum of March continues. Our powerbrands like Bolero and Scorpio continue to do well. We have also seen a very encouraging response to our Plush New XUV5OO. We are doing well both in urban and rural markets, on our various brands,” said Rajan Wadhera, president – Automotive Sector, M&M. M&M launched a new XUV 5OO last month and refreshed KUV 1OO NXT earlier in the year. The latter is believed to have helped the company improve growth in the segment in April. M&M saw its total passenger vehicle volumes grow 13% to 21,927 units in April 2018.
Meanwhile, Tata Motors said that robust demand for Nexon had resulted in strong growth in the UV segment for the company. Mayank Pareek, president, Passenger Vehicles Business Unit, Tata Motors, said, “Our sales grew by 34% over last April 2017, driven by the strong demand for Nexon. We are attracting new customer profiles in the UV segment.” Tata Motors sold 17,235 passenger vehicles in April 2018 as against 12,827 units in the same month last year.
Pareek added, “While there were challenges in the market, strong demand for new generation products like Tiago, Tigor, Nexon and Hexa led the growth in April 2018.” In the mid-sized sedan segment, Maruti Ciaz saw its allure fade with its sales declining sharply by 27.2% in April this year to 5,116 units in 2018 from 7,024 units in April 2017.
In fact, the car has seen sales trend down ever since the new generation Hyundai Verna was launched in August 2017, and now with the recently launched challenger from Toyota, Yaris, open for bookings, the slide has been accentuated. The Ciaz on sale today is a four year old model and its facelift is yet to hit the market.
But even as Maruti saw its grip weaken in sedans, it continued to clock heady growth in compacts. The new Swift continued to fuel growth in the compact segment, driving volumes up 32%. Sales of all passenger vehicles for Maruti grew 16% and its total sales, including domestic and exports, grew 14.4% to 172,986 units in April 2018.
Hyundai Motor India (HMIL) sold a total (domestic+exports) of 59,744 units in April 2018 as against 56,368 units in the same month last year, displaying only a moderate growth of 6%.