After registering record sales in April, the auto industry has maintained the momentum in May, despite the several rounds of price hikes after the budget. The double-digit growth has been possible due to easy availability of finance.
Maruti Suzuki crossed the 1 lakh monthly sales number for the first time, with total sales of 102,175 units, growth of 28% YoY. The company recorded its highest-ever domestic sales of 90,041 units (up 27%), while exports grew by 33% YoY. The key ‘A2’ segment had sales growth of 17%, while ‘C’ segment sales increased by 70%, supported by the recently launched mini van Eeco. MSIL also saw demand returning to its top 10 cities, which grew 25% MoM.
Tata Motors recorded a jump of 41% in its total sales at 56,779 units vs 40,196 units. Domestic sales stood at 52,801 units vs 38,392 units (up 38% YoY), commercial vehicles- 31,475 units ( up 37% YoY) and passenger vehicles- 23,489 units ( up 42% YoY), which got the boost due to the launch of Manza. The export market has started to show signs of revival and TML saw a jump of 121% at 3,978 units vs 1,804 units. The total number of Nano’s delivered so far are 3,550 units. The deliveries are likely to be completed before December.
At Mahindra and Mahindra Ltd, which makes tractors and utility vehicles, sales rose 66% to 27,036 units.
Domestic sales at Hyundai Motor India Ltd, the second largest car maker in the country, also increased 13% to 27,151 units.
“Although the market continues to grow, we were constrained by our planned annual maintenance shutdown this month, which restricted our numbers as we had to divert our export production to meet the demand for the domestic market,” the company said in a statement.
Other global car makers also performed well in the Indian market. General Motors India Pvt Ltd saw May sales rise 61% to 8,225 units, while the Indian unit of Toyota Motor Corp said sales rose 54% to 6,050 units.
New models helped domestic and export sales at Bajaj Auto Ltd, the country’s second largest motorcycle maker. Sales rose 63% to 269,488 units. The market leader Hero Honda saw the highest ever sales again at 436,000 units with volumes growing by 14%. Sales at 4,35,933 units vs 3,82,678 units (up 14% YoY). The bike maker has already increased capacity to meet the demand and is also looking at a new plant to accommodate future demand.
TVS managed total two-wheeler sales at 154,667 units vs 118,574units (up 30% YoY).
While the automakers are positive on maintaining the bull run on the back of good monsoon, the hardening of raw material prices might be a dampener. The industry anticipates another round of price hikes.
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