April 2016 passenger vehicle sales: The gainers and losers

Most automakers in India registered a growth in passenger vehicle sales in April 2016 as consumer demand remained upbeat despite a rise in prices. Last month, companies passed on the additional burden of infrastructure cess to car buyers almost instantly, following an announcement made in Budget 2016-17.

At the top, the trio of Maruti Suzuki, Hyundai and Mahindra saw a rise in dispatches as they registered double-digit growth. Renault India’s volumes continued to see a spectacular gain and Ford, too, saw an expansion in volumes.

Toyota and Honda, however, saw its sales volumes slackening in April. The Supreme Court’s decision to extend the ban on registration of vehicles above 2,000 cc in Delhi-NCR weighed on Toyota's volumes, whereas Honda grappled with the shift in consumer preference – from diesel to petrol.

Gainers

At Maruti, passenger vehicle volumes grew 16 percent year-on-year to 1,17,045 units during the month, up from 1,00,709 units last year, on the back of expansion in volumes of cars like the Dzire Tour, Baleno and the Ciaz. Sales of the entry-level duo, the Alto and Wagon R, however, declined 10 percent to 31,906 units.

Hyundai Motor India registered sales of 42,351 units in April 2016, up 10 percent, on the back of the continuing upbeat demand for the Creta, i20 and the Grand i10.

Mahindra & Mahindra saw growth of 16 percent in its passenger vehicles sales to 22,655 units, aided by the new launches, such as the KUV100, TUV100 and the NuvoSport. With respect to the ongoing diesel ban in Delhi, Pravin Shah, President & Chief Executive (Automotive), said, “We do hope that the Supreme Court, while taking a decision on diesel vehicles ban in NCR region on May 9, will take cognizance of all the facts including the role that the automotive industry plays in the country’s industrial growth.”

French carmaker Renault’s Indian subsidiary saw volumes rising significantly, driven by its entry into the hatchback segment and the astounding response for the Kwid. Renault India registered sales of 12,426 units in April 2016, up from 4,001 units last year.

For home-grown carmaker Tata Motors, the fiscal year started on a buoyant note as its passenger vehicles segment witnessed a growth in sales (11,161 units, up 7.9 percent on-year), after many months of decline. Tata Motors is banking on the recently launched Tiago to drive sales in the segment. Ford India’s domestic sales grew to 6,531 units (up 32 percent year-on-year) in April.

Losers

Passenger vehicle sales at Toyota remained under pressure due to the ongoing ban in its key market of Delhi-NCR. Commenting on the performance, N. Raja, Director & Sr. Vice President, Sales & Marketing - Toyota Kirloskar Motor said, "We are hopeful that the court in the next hearing on  May 9, 2016 will lift the ban on registration of diesel vehicles, which is impacting only our sales efforts." Toyota has just launched the new Innova Crysta, a successor to its hugely popular Innova MPV, and is hopeful of seeing a growth in sales.

Honda’s domestic sales in April fell to 10,486 units, down 17 percent as against the 12,636 units of last year. The shift in consumer preferences from diesel to petrol due to the diesel uncertainty has impacted sales as there is a mismatch in demand and availability of required variants, according to  Jnaneswar Sen, senior vice president of Marketing & Sales at Honda Cars India. Sales of the Jazz dipped considerably to 869 units in April, from an average of around 4,300 units since its launch.