(The Hindu Business Line 2nd May 2008)
April has brought cheer to car makers and two wheeler makers alike. An uptrend is visible in the car market while the slumping two-wheeler sector has witnessed a turnaround.
The duty cut in the Budget seems to have worked in favour of automobile companies. However, it remains to be seen whether the companies will be able to retain the growth momentum in the face of cost pressure and credit tightening measures.
The country’s top car maker Maruti Suzuki registered a 24 per cent growth in unit sales while the second largest car maker Hyundai Motors’ sales grew by 48 per cent in April. Car makers GM and Skoda – whose market share in India is smaller – showed 24 per cent and 81 per cent growth, respectively.
Maruti Suzuki India, in a press release issued on Wednesday, said it sold 62,336 vehicles in April against 50,352 in the same period last year. This includes 2,797 units the company had exported. The increase in volumes is mainly on account of the compact car segment, which includes Alto, Wagon R, Zen and Swift, where sales grew 27 per cent to 43,121 units last month. The recently launched DZire has taken the company’s sales volume in the midsize segment to 4,187 from 2,124, making for a growth of 97 per cent.
The sales of M800, once its flagship model, declined 30 per cent to 4,458 in April.
Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and the largest passenger car exporter, sold 40,001 units in April, 47.8 per cent higher from the year-ago period when it sold 27,069 units.
While Hyundai’s domestic sales accounted for 21,501 units, exports totalled 18,500 units in April. “We feel that the Budget has been a contributory factor. The i10 too has done exceedingly well. Its domestic sales alone account for over 50,000 units in just six months which is the fastest ever for any model, and with the highest growth rate in this segment, things are looking good for us,” said Arvind Saxena, Senior Vice-President, Marketing & Sales, HMIL.
General Motors India has registered a year-on-year sales growth of 24.3 per cent in April 2008. It sold 5,563 units in April (4,474 units), said the company release.
General Motors India’s April sales comprise 1,963 units of the Chevrolet Spark, 1,863 units of the Chevrolet Tavera and 1,055 units of the Chevrolet Aveo. Chevrolet Spark, the small car from the GM stable, reported a 66 per cent growth in sales over the corresponding period last year.
Skoda India’s sales rose to 1,814 units last month (1,000 units). Almost half of its volumes came from the Skoda Fabia.
Against the general trend, premium car makers Honda Siel Cars India showed a 30 per cent decline in sales. The company sold 3,400 units in April (4,891 units).
Two-wheeler turnaround
Putting an end to the prolonged slump in sales, two-wheeler makers showed good growth in April on the back of favourable budgetary decisions and a host of new model launches. The new-found enthusiasm in the above-125 cc segment seems to have guided an upward trend in bike sales, notwithstanding high interest rates, lack of consumer finance and cost escalation.
Hero Honda recorded a nine per cent growth by selling 2,86,252 units in April (2,62,544 units). The recent launches CBZ X-treme and Hunk, have helped the company to almost double its share in the premium segment, according to a news release from the company.
The second largest two-wheeler maker Bajaj sold 2,03,930 units in April (1,65,692 units). Its 125 cc+ portfolio including Pulsar, Avenger, Discover, and XCD grew 34 per cent, said the company’s press release. Bajaj’s good show is mainly on account of a surge in exports.
TVS Motor Company has posted near five per cent growth, registering total two wheeler sales of 109,937 units in April (104,893 units), said the company release.
Honda Motorcycles and Scooters India (HMSI) showed an overall growth of 8 per cent in April 2008, clocking 70,988 units.
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