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Motown revival in sight as car sales grow 10% in November

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After witnessing subdued sales for September and October, car manufacturers reported some recovery in wholesale dispatch numbers for November.

As per the numbers released by the car manufacturers on Monday, sales of top companies – including Maruti Suzuki, Hyundai, Honda and Tata Motors – rose year on year in November, while those of Mahindra & Mahindra (M&M) continued to fall.

Total monthly sales in November jumped 10.43% over the corresponding month in 2013.

After witnessing some signs of recovery this year, the sales had slowed down in the previous two months. Sales remained in negative territory in October this year falling 4%, despite it being the peak festive season.

Maruti Suzuki, the biggest carmaker, which has been leading the growth this year, saw flat sales in October as volumes were impacted due to limited availability of vehicles and lesser number of working days, the company said.

However, its wholesale dispatches bounced back in November, backed by new launches including Ciaz and new Alto K10. Company's sales grew to 100,024 units compared with 85,510 units sold in November last year, a growth of 17%.

Hyundai, second-largest car maker, saw sales grow 6% during the month. Rakesh Srivastava, senior VP- sales and marketing, Hyundai India, said in a statement, "The strong investment of launching four new products in a year's time has resulted in this growth."

Tata Motors's passenger vehicles recorded a domestic sales of 12,021 units in November, a growth of 16% year on year. The trend of growth in passenger vehicles continued, with the strong numbers of Zest and Nano. While the sales of the passenger cars in November 2014 were at 10,286 numbers, higher by 30% over 7,910 sold in November 2013, its utility vehicles sales fell 30%.

Total sales of Tata commercial and passenger vehicles in November 2014 were 41,720 vehicles, a growth of 2% over 40,863 vehicles sold in November 2013. The company's domestic sales of commercial and passenger vehicles for November 2014 at 37,427 units remained flat.

Sales of Honda grew 64% in November.

M&M continued to remain under pressure, and reported a decline of 18%.

Pravin Shah, chief executive, automotive division & international operations (AFS), M&M said, "The auto industry continues to its sluggish demand on the back of factors such as low consumer sentiments and high interest rates."

"Reducing international crude prices and the subsequent lowering of fuel prices should help in revival of demand in the coming months. We also hope that the current excise duty rates will be extended beyond December to get much needed recovery for the auto industry," he said.

Jnaneswar Sen, senior vice-president – marketing & sales, Honda Cars India, said in a statement, "We continue to witness strong demand for all our products across markets. During November, we began the second shift of production in Tapukara plant, which has helped us in improving the availability of Honda City."

Dispatches of Ford India continued to remain in negative as it declined 28%.

"There are signs of market coming back. Discounts on key models have come down and manufacturers have taken a price hike. This reflects that the sentiments are back. There is an upswing in demand. Reducing oil prices is also boosting the sentiments," said Puneet Gupta, associate director, IHS Automotive Sales Forecasting.

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