New Delhi: Car sales in the country grew moderately in August with major auto makers such as Maruti Suzuki and Tata Motors witnessing increase in despatches, while Hyundai posted its best ever monthly sales with new models making significant contributions. However, Honda Cars India and Mahindra & Mahindra reported decline in sales last month reflecting “fragmented recovery” that the auto industry is witnessing. Market leader Maruti Suzuki India said its domestic sales rose 8.6% to 1,06,781 units. Sales of mini segment cars, including, Alto and WagonR, increased by 8.6 % to 37,665 units as compared to 34,686 units in the year-ago month, MSI said.
The company’s newly launched premium crossover vehicle S-Cross clocked sales of over 4,500 units during the month. Rival Hyundai Motor India saw its highest ever monthly domestic sales at 40,505 units last month as compared to 33,750 units in August 2014, up 20.01 %. “The growth has been led by the new SUV Creta, Elite i20 and i20 Active. While the Creta has done about 7,400 units, other models have also contributed to the overall growth,” HMIL senior vice-president (sales and marketing) Rakesh Srivastava said. Hyundai recorded highest-ever single month sales with a volume of 40,505 units and growth of 20 % over the last year, led by strong youthful product portfolio, he added.
Tata Motors’ sales of passenger cars in August were higher by 19 % at 9,814 units. Its domestic passenger vehicles sales rose 2 % at 11,194 units. “The growth that we are seeing in the industry is because of the new models. If you take out the new models, industry growth will be in the negative,” Tata Motors President (Passenger Vehicles Business Unit) Mayank Pareek told PTI. This is a concern as August is the time when usually sales start picking up, which hasn’t happened this time, he said, adding that the ‘pain areas’ of the industry were mainly dip in consumer sentiment and expectation of a cut in interest rates making customers postpone purchases.
He further said that the narrowing gap between petrol and diesel prices has hurt demand for utility vehicles, which also had been affected due to the hike in excise duty. Honda Cars India reported 6.58 % decline in domestic sales at 15,655 units in August, despite the launch of its new Jazz in July. Utility vehicle major Mahindra & Mahindra saw its domestic sales decline 3.10 % to 32,122 units last month. In the two-wheeler segment, Honda Motorcycle & Scooter India (HMSI) reported 1.86 % increase in total sales at 3,95,262 units in August.
