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Home arrow Aerospace arrow Automotive sector sales in October show marginal growth for many
Automotive sector sales in October show marginal growth for many Print E-mail
Written by Ganesh   
Wednesday, 02 November 2011
New Delhi: Many of the automotive manufacturers in the country were faced with marginal sales growth in October due to unprecedented hike in interest rates, fuel prices, commodity prices, growing inflation and negative market sentiments.

While some companies like Volkswagen, Mahindra and Toyota recorded impressive sales growth in October, driven by specific model sales, others have recorded marginal sales growth or decline in sales during the festive season.

Volkswagen reported a 67.30 per cent year-on-year increase in its India sales to 7,266 units in October. The company had sold 4,343 units in the corresponding period last year. Compact car Polo and sedan Vento continue to be the backbone for the brand, with a total of 6,814 units sold in October, 2011, the company said.

"Our action model strategy has once again proved to be very successful, with the Polo and the Vento Breeze being a huge attraction for customers during the festive season," Volkswagen Group Sales India Member of Board and Director, Volkswagen Passenger Cars, Neeraj Garg said.

Toyota Kirloskar Motor has reported a 63.01 per cent year-on-year increase in sales to 10,762 units in October 2011. The company had sold 6,602 units in the corresponding month last year.  The growth in sales is mainly driven by Toyota’s latest entrants Etios and Etios Liva, which sold 3,405 and 2,454 units, respectively. Multi-utility vehicle Innova, premium sedan Corolla Altis and sports utility vehicle Fortuner recorded sales of 3,411, 700 and 763 units, respectively.

"The production in October has been low due to the festive holidays. However, we have registered a growth in sales last month. The Etios continues to drive the sales growth," TKM Deputy Managing Director (Marketing), Mr Sandeep Singh, said.

General Motors India has reported a marginal increase in its October sales at 10,062 units compared to the same month last year. The company recorded sales of 10,051 units in the corresponding month last year. During last month, the company sold 1,797 units of small car Spark, 5,328 units of hatchback Beat, 182 units of entry level sedan Aveo, 236 units of mid-sized sedan Optra and 732 units of luxury sedan Cruze. The company also sold 1,687 units of multi-purpose vehicle Tavera, and 100 units of sports utility vehicle Captiva.

"We have been able to sustain the growth primarily due to the good sales of Chevrolet Beat Diesel which continues to be in good demand. We are planning to ramp up the production of Beat Diesel to meet the growing demand for the product in the coming months," said GM India Vice-President, Mr P. Balendran. "The market continues to remain sluggish due to unprecedented hike in interest rates, fuel prices, commodity prices, growing inflation and negative market sentiments. These factors are putting lot of pressure on the automobile market."

Mahindra & Mahindra announced a 20% rise in its auto sales numbers, which stood at 41506 units during October 2011 as against 34495 units during October 2010. The company’s domestic sales stood at 39352 units during October 2011, as against 32491 units during October 2010, an increase of 21%. This is in spite of the planned maintenance shutdown of 5 days which the company took in October 2011, which was taken in November last year. The 4-wheeler commercial segment which includes the passenger and load categories has registered an impressive growth of 41%.

"We are delighted with a 20% growth in October in spite of the planned maintenance shutdown which we took during this month. The XUV500 has received a phenomenal response with 8000 plus bookings in just 10 days and we are currently in the process of expediting deliveries before re-opening bookings," said Rajesh Jejurikar, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd.

Ford India reported a 12.01 per cent increase in total sales during October to 10,906 units, mainly on account of higher exports. The company sold 9,737 units in the corresponding month last year. Ford’s domestic sales declined by 10.36 per cent to 8,091 units as against 9,026 units in the corresponding period of last year. Its overseas shipments, however, rose nearly four-fold to 2,815 units in October this year from 711 units in the same month last year. During the January to October period this year, Ford sold 1,01,439 units, as against 77,324 units in the corresponding year-ago period, translating into a 31.19 per cent increase.

"Exports are a strong part of our growth strategy. And it’s wonderful to see the Chennai-made Figo winning hearts of customers in overseas markets too," Ford India President and Managing Director, Mr Michael Boneham said.

Hyundai Motor India Ltd has reported a 7.45 per cent decline in total sales to 48,325 units in October 2011. The company sold 52,217 units in October 2010. In the domestic market, the company’s sales fell 4.95 per cent to 33,001 units from 34,720 units in the same month last year. Exports dipped 12.42 per cent to 15,324 units during the month under review from 17,497 units in the year-ago period.

The company’s latest small car, Eon, has been received well and HMIL has got more than 9,000 bookings till date. In the A2 segment (Eon, Santro, i10 and i20), the company sold 41,204 units, while in the A3 segment (Accent and Verna), sales stood at 6,929 units. The A5 segment (Sonata Transform) of HMIL witnessed sales of two units, while its new Santa Fe SUV attracted 190 buyers during the month.

"We have seen that sales get a boost in the festival season, but this year, sentiment has been tepid. We don’t expect a major upswing in the near future, the challenging economic environment is affecting the industry," HMIL Director (Marketing and Sales), Mr Arvind Saxena, said.

Tata Motors has reported a 5.02 per cent increase in its total sales during October 2011 at 68,009 units against 64,756 units in the same month last year. Total passenger vehicles sales in the domestic market stood at 25,124 units in October, up 2.64 per cent from 24,478 units in the same month last year. Nano sales stood at 3,868 units, up 26 per cent. The ‘Indica’ range reported sales of 10,812 units, up 11 per cent. The ‘Indigo’ family recorded sales of 6,268 units, down 24 per cent. Sales of ‘Sumo’, ‘Safari’ and ‘Aria’ grew 23 per cent to 4,176 units. In the commercial vehicles segment, the company sold 38,714 units in the domestic market during the month under review compared with 34,328 units in the period last year, translating into an increase of 12.78 per cent. Light commercial vehicle sales amounted to 21,892 units, a growth of 6 per cent over last year, while medium and heavy commercial vehicle sales stood at 16,822 units, a growth of 23 per cent. Exports fell 29.90 per cent to 4,171 units last month from 5,950 units in the same month last year.

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