New launches drive car sales in July

By: | Published: August 2, 2015 12:39 AM

Healthy growth for Maruti, Hyundai in july; subdued sales for two-wheelers

Car salePassenger vehicles saw a strong growth in domestic sales in July, with segment leaders Maruti Suzuki and Hyundai Motor registering 22.5% and 24.7% year-on-year growth, respectively. (Reuters)

Passenger vehicles saw a strong growth in domestic sales in July, with segment leaders Maruti Suzuki and Hyundai Motor registering 22.5% and 24.7% year-on-year growth, respectively. The growth was driven by healthy sales in the entry-level passenger cars’ segment, along with new launches across categories.

However, Mahindra and Mahindra continued to witness a contraction in domestic sales in the passenger vehicles segment, while Toyota Kirloskar managed growth of a mere 1.24%.

For Maruti Suzuki, sales of small cars, including Alto and WagonR, increased 31.3% to 37,752 units, compared with 28,759 units in the year-ago period, the company said in a statement on Saturday.


The company also said the sales of compact sedan Dzire Tour stood out, as sales rose by over two-fold during the month under review to 3,370 units against 1,299 units in July 2014.

Hyundai Motor India reported sale of 36,500 units in the domestic market last month as compared with 29,275 units in July 2014, up 24.7%. Growth for the company was driven with its newly-launched sports utility vehicle Creta, the company said. Creta was launched on July 21.


Tata Motors posted a growth of 13% in domestic sales of passenger vehicles, with sales of 10,389 units against 9,167 units last year. The company said the sales were driven by newly-launched passenger cars Zest, Bolt and GenXNano.
Volkswagen, too, posted double-digit growth in domestic sales in July, driven by the launch of the new Vento. The company posted a growth of 18% in sales.

Honda cars witnessed 18% higher growth with the launch of the new Jazz.

In the utility vehicle segment, Maruti saw a sales growth of 22.8% with 6,916 units in July this year. Maruti sells Gypsy, Grand Vitara and Ertiga in the segment. Tata Motors, however, saw a contraction of 24% in this segment.

Analysts expect sales to improve and sustain in the year with new launches and a good monsoon. “OEMs with good portfolio in the small car segment and good penetration in the rural market have grown significantly. Hopefully, the good monsoon across a large part of the country, cut in petrol and diesel prices, upcoming monetary policy, new launches and festive season should help the Indian auto industry to grow this fiscal,” said Abdul Majeed, partner at Price Waterhouse.

However, the two-wheeler segment continued to post poor growth in July. Market leader Hero MotoCorp saw a contraction of about 8% in total sales.

The company said retail sales for the company are ‘better than dispatches’. It dispatched 4,87,580 units in July against 5,29,862 units in July 2014.

Honda Motorcycle and Scooters India and TVS Motors also posted subdued growth at 2% and 1.3% total sales growth, respectively. While Honda sold 3,89,626 units in the month, TVS sold 2,08,044 units.

However, Eicher Motor’s Royal Enfield continued to post robust growth with total sales jumping 49% to 40,760 units in July. Sales in the domestic market grew 49% to 39,867 units.

On the commercial vehicles front, Ashok Leyland posted an impressive 40% growth in domestic sales, while Tata Motors witnessed a contraction of 5% in the domestic market. There was slow growth in the light commercial vehicles segment with sales rising only 5.11% to 2,219 units.

Tata Motors’ performance was pulled down by the slowdown in the light and small commercial vehicles segment, where it witnessed a contraction of 21%. Tata Motors saw a growth of 21% in the medium and heavy commercial
vehicles segment.

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