Neither lower lower inflation nor cheaper fuel helped the auto industry during August, as most companies – both car as well as two-wheeler – were unable to match their sales on year-on-year basis.

Except car market leaders such as Maruti Suzuki India (MSIL) and Hyundai Motor India (HMIL), others recorded either marginal growth or lower than the previous year’s numbers during the month.

Similar was the case for two-wheeler as well as commercial vehicle players.

In the passenger car segment, market leader MSIL sold around 1.07 lakh units during August, nine per cent up, compared with 98,304 units in the corresponding month last year.

Second largest carmaker Hyundai Motor India achieved 20 per cent increase year-on-year (Y-o-Y) by selling 40,505 units last month against 33,750 units in August 2014.

Youthful product The company said this was the highest-ever single month sales in the country.

“This was led by strong youthful product portfolio in which the Global SUV Creta, Elite i20 and i20 Active had volumes of more than 17,800 units showcasing the customers’ continued aspirational preference for new and exciting models even in these challenging times,” said Rakesh Srivastava, Senior Vice-President - Sales and Marketing, HMIL.

He said Hyundai looks forward to sustain double digit growth above the industry growth rate increasing market share in passenger vehicles.

EcoSport and Figo Aspire maker Ford India also achieved more than 20 per cent YoY by selling 8,331 units during August against 6,801 units in August last year.

Home-grown company Tata Motors also achieved positive sales during last month with 11,194 units, up two per cent, against 10,975 units in August 2014.

However, Mahindra & Mahindra saw fall in its car sales by 37 per cent with only 891 units during August (1,410 units).

The ‘City’ maker Honda Cars India also saw a dip of around seven per cent YoY in its sales with 15,655 units last month against 16,758 units in August 2014.

In the two-wheeler segment, market leader Hero MotoCorp saw a fall of 14 per cent in its sales over 4.80 lakh units against 5.58 lakh units in August last year.

Honda Motorcycle and Scooter India saw just a marginal growth at 3.73 lakh units during August compared with around 3.71 lakh units in August 2014.

In the commercial vehicles segment, only Volvo Eicher Commercial Vehicles and M&M saw positive growth YoY during the month.

Outlook bright According to analysts, this year, the industry would see good growth in the range of 15-20 per cent in medium and heavy commercial vehicles segment.

“Also in this segment there will be some pre-buying ahead of mandatory introduction of ABS from October.

“Motorcycle and LCV segment demand hopefully will pick up in the second-half with improved rural economy and moderation in the interest rates,” said Abdul Majeed, Partner at Price Waterhouse.

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