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  1. Most auto firms buy into recovery story, post sales growth in February

Most auto firms buy into recovery story, post sales growth in February

Signaling a recovery in India’s passenger car market and a pick-up in infrastructure and manufacturing activity aiding commercial vehicle sales...

By: | Mumbai | Updated: March 3, 2015 5:09 AM

Signaling a recovery in India’s passenger car market and a pick-up in infrastructure and manufacturing activity aiding commercial vehicle sales, most automobile firms in India posted a year-on-year growth in sales for February.

Among exceptions, sales of light commercial vehicles (LCVs) continued to decline, albeit at a lower rate, and two-wheeler makers suffered a slump in sales as well.

Ashok Leyland was the best performer in the heavy vehicle segment, posting a 48% y-o-y growth in sales to 8,320 units.

Tata Motors, which has been struggling due to declining car and CV sales over the last couple of years, also saw a healthy volume growth in both segments, for the second consecutive month. The company’s medium and heavy commercial vehicle (M&HCV) sales grew by 34% to 12,190 units on the back of strong demand as fleet owners are replacing their old vehicles.

India car market, passenger car market, automobile firms India, car sales february, light commercial vehicles, Ashok Leyland, Tata Motors

Tata Motors recorded a 4% decline in LCV sales in February to 14,347 units. While ALL’s LCV sales grew 8%, albeit on a lower base. Overall, CVs for both Tata Motors and ALL grew by 11 % and 36%, respectively.

PV sales continued its growth trajectory in February.

Market leader Maruti Suzuki registered a rise of 8.2% to 1,07,892 units on the back of strong demand for the Ciaz and Celerio, and continued patronage for older variants like the Dzire and Alto. Honda and Hyundai also reported a 16% and 9.7% growth in car sales, compared to February 2014. Tata motors’ PV sales grew 31% on the back of strong demand for the Zest and Bolt.

February has not been a good month for two wheelers as market leader Hero MotoCorp and Bajaj Auto registered declines in sales. Hero MotoCorp’s posted a 3.85% decline as sales in rural areas dipped and competition from Honda — in both the motorcycle and scooter segments — intensified.

Bajaj saw a 22% decline as it failed to grow sales of the Discover that used to drive 40% of its sales. Lack of products in the 120-125cc commuter bike segment is also hurting the company.

The lack of new offerings in the UV segment continued to hurt M&M as it registered a 11.23% decline in sales.

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