Indian auto industry continues its growth drive in June (Roundup)

Chennai/Bengaluru, July 1 (IANS) Major players in the Indian automotive industry barring car maker Maruti Suzuki India Ltd closed last month on a positive note as compared to corresponding period in the previous year.

They are also pinning their hopes of doing well in the coming months on the implementation of the Seventh Pay Commission report recommendations for the central government employees, a normal monsoon and a favourable ruling from the Supreme Court in respect of high-powered diesel engines.

“Better monsoon, positive customer sentiments and Seventh Pay Commission bonanza should help auto industry to perform much better than last fiscal year, possible GST (Goods and Services Tax) roll out and resolution on ban on large diesel vehicle will also help the auto industry in keeping the growth momentum,” said Abdul Majeed, Partner and automotive sector expert at Price Waterhouse.

India’s second largest car maker Hyundai Motor India Ltd said it sold 39,806 units in the domestic market last month as against 36,300 units sold during June 2015.

Including exports, Hyundai Motor sold 55,713 units last month up from 52,062 units sold in June last year.

On the other hand, the country’s largest car maker Maurti Suzuki logged a negative growth of 13.9 per cent in sales volume selling 98,840 units down from 114,756 units sold in the same month last year.

The company recorded domestic sales of 92,133 vehicles and exports of 6,707 in June 2016 as against 102,626 and 12,130, respectively, in June 2015, said a Maruti Suzuki statement.

The production last month was affected due to fire at Subros, a key vendor, the statement said.

Barring the utility vehicle models like Ertiga, Gypsy, S-Cross, Vitara Brezza, Maruti Suzuki logged negative sales last month.

Mahindra & Mahindra (M&M) sold 39,011 units in June 2016, registering a growth of eight per cent compared to the sale of 36,134 units sold in the year ago period.

Passenger vehicles segment encompassing utility vehicles, cars and vans accounted for sales of 17,070 vehicles, commercial vehicles 13,540 vehicles, three wheelers 4,381 vehicles and exports 4,020 vehicles, rising by 41 per cent from 2,852 units in June 2015.

“Achieved an overall growth of 11 per cent during the first quarter of the current financial year despite various challenges,” said M&M (Automotive) CEO Pravin Shah in a statement.

According to Shah, the ongoing good monsoon will improve sentiments and thereby increase demand owing to rural prosperity.

Toyota Kirloskar Motor sold 13,502 units in the domestic market and exported 1,352 units last month as against 12,381 units (domestic 10,464 units, exports 1,917 units) in June 2015.

On its part Ford India logged a total sales of 19,754 units (domestic 9,469 units, exports 10,285 units) last month up from 7,979 units (domestic 4,527 units, exports 3,452 units) sold in June 2015.

“The recent announcements of Seventh Pay Commission, along with the prediction of normal monsoon and scrappage policy are keeping the industry optimistic about future growth,” Anurag Mehrotra, Executive Director, Marketing, Sales, and Service at Ford India was quoted in a company statement.

In the two-wheeler segment, the world’s largest player HeroMoto Corp Ltd sold 549,533 units in June 2016 up from 542,362 units sold in June 2015.

Two and three wheeler maker TVS Motor Company clocked a sales growth of 11 per cent during the month of June 2016, with total sales of 247,085 units last month up from 222,017 units in June 2015.

Similarly India Yamaha Motor and Eicher Motors Ltd too grew their sales last month to 67,203 units and 50,682 units respectively.

In the commercial vehicles sector Ashok Leyland Ltd sold 11,108 units last month as against 10,429 units in June 2015.



Related Posts

Leave a Reply