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September sees mixed auto sales results with 6.78% growth; all eyes set on festive season

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September sees mixed auto sales results with 6.78% growth; all eyes set on festive season

The auto sales for the month of September had seen mixed results. While few of the automobile companies posted positive results, there were others that saw a drop in sales. The total sales growth of these auto companies during the month accounted for 6.78 per cent. While Maruti Suzuki, Hyundai, Honda Cars and Ford India saw a growth in sales in September, Mahindra & Mahindra (M&M), Tata Motors and Toyata Kirloskar Motor had seen a drop in sales.

Maruti Suzuki, which is the largest auto company in India, saw its sales grow by 6.8% in September over the same month last year. The company’s domestic sales grew in September to 106,083 units from 99,290 units in September last year. Hyundai during the same month recorded the highest-ever domestic sales of a 21.3% growth. Sales during the month grew to 42,505 units in September from 35,041 units during the corresponding month last year. Honda registered a 23% growth in the domestic sales in September. The Japanese auto manufacturer sold 18,509 units in September 2015 as against 15,015 units during the same month last year. Ford India too registered a high 22% growth in September as domestic sales grew to 8,274 units from 6,786 units during the same month last year.

However, M&M saw a large decline of 7.46% as passenger car sales during September were 19,564 units as compared to 21,141 units during the same month last year. Toyota Kirloskar Motor saw a decline in growth of 9.10% as sales during the month was 11,401 units in comparison to 12,542 units during the same month last year. Tata also saw a decline in sales of 1.3% as the units sold in September were 11,774 units in comparison to 11,931 units during the same month last year.

New launches pushed growth

The new diesel hybrid model of Ciaz for Maruti Suzuki did well and drew more buyers. The company sold 4,291 units of the model during the month. However, the S-Cross which was launched recently was a slower than anticipated sales. S-Cross with utility vehicles of Maruti Suzuki such as Gypsy and Ertiga grew only by 5.9% in September to 6,331 units.

Hyundai saw a strong response for its new Creta SUV and hatchback Elite i20 models. The strong demand for Creta has resulted in the company increasing its production by 50% to 7,500 units a month from earlier 5,000 units a month.

Honda Cars saw Amaze taking over as the top most sold car for the company with sales accounting for 6,577 units. It even over took older models such as City and Jazz. The new Jazz total sales was 4,762 units.

M&M despite poor sales in September saw its newly launched model TUV300 sales take off really well. This was the first new model of the car in more than four years. They are also planning more launched for the coming two months.

The new Figo hatchback along with the Figo Aspire saw the highest sales for Ford India during the month. They are also expected to launch a few more models in the coming few months.              

High sales anticipated in October

The total sales growth in September had reduced a little in comparison to last month. While total sales in September grew by 6.78%, in August it grew by 7.61%. These were two consecutive months of low single digit growth for the automobile sector after seeing extremely high growth in July. In July, the sales growth for the auto industry had zoomed to 17.2%. Factors such reduction in fuel prices and new launches had pushed sales during the July month.

The sector, however, expects much better results during the month of October with demand expected to pick up. This is due to the peak of the festive season approaching and the recent interest rate cuts of up to 50 basis points (0.50%) by the RBI which is expected to reduce auto loan rates. Cheaper auto loans will be something that this industry will ride on apart from the numerous launches planned for the month.

With the anticipation of growth during the festive season due to the interest rate cuts, coupled with new launches we can expect the ad spends of auto companies to peak during the months of October and November.


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