India’s passenger vehicle sales mixed in December

Passenger vehicle sales in December witnessed an assorted trend when compared to the same month in 2014. Carmakers such as Maruti Suzuki, Hyundai, Renault, and Ford posted growth in sales whereas Toyota and Tata Motors saw volumes declining. Mahindra & Mahindra (M&M) ended the year on a muted note.

While the new products launched in the recent months, low fuel prices, and year-end discounts boosted sales, the ban on registration of diesel vehicles with engine capacities over 2,000cc in Delhi and severe floods in Chennai weighed on volumes of some car manufacturers.

India’s largest carmaker Maruti Suzuki posted a 13.5 percent year-on-year rise in domestic sales to 1,11,333 units in December. Sales of the company’s compact car models such as the Swift hatch, Dzire sedan, Celerio and the Baleno grew 14 percent year-on-year to 47,354 units. Sales of its entry-level segment cars such as the Alto and Wagon R recovered from a 4.7 percent decline in November to a 7.5 percent growth at 37,234 units in December.

The South Korean manufacturer, Hyundai, and also the second largest car manufacturer in India, registered domestic sales of 41,861 units, up 28.79 percent from 32,504 units last year due to the strong demand for its Creta SUV, as well as the Grand i10. Following the suit of other major carmakers adding safety features to their vehicles, Hyundai recently equipped its Elite i20 and i20 Active with dual airbag as standard. Moreover, the carmaker also updated the variant line-up for its 2016 i20.

M&M was severely hit by the Supreme Court’s ban on registration of large diesel cars and SUVs in Delhi and National Capital Region (NCR) since the ruling affects the XUV 500, Bolero, Scorpio and Thar among other vehicles. Consequently, its passenger vehicles segment sold 18,197 units in December 2015 as against 17,980 units during December 2014, up by just 1 percent.

“Inspite of a challenging external environment, we at Mahindra have closed December on a positive note”, Pravin Shah, President & Chief Executive (Automotive), M&M Ltd said in a company statement.

Toyota sold a total of 10,442 units in December 2015, down 11 percent from 11,738 units in the domestic market in December 2014. The monthly sales of the Japanese manufacturer were also considerably affected by the ban on sale of large cars in Delhi and NCR where Toyota is significantly present, the company stated in a statement. Sales were also hit by the Chennai floods, it said. The carmaker had announced a one-day shutdown in its plant due to parts shortage from its Chennai vendors, according to reports.

Renault India registered a growth of 160 percent with monthly domestic sales of 10,292 units in December 2015 as against 3,956 units in the corresponding month last year. The carmaker said that it has substantially increased its sales and service network reach in India, from 14 sales and service facilities in mid-2011 to 190 currently, and will reach 240 facilities by end-2017.

Passenger vehicles sales at Tata Motors stood at 8,069 units, down 33 percent, compared to 12,040 units last year. The carmaker said that high base effect as a result of significant increase in sales in December 2014 ahead of the increase in excise duty effective January 1, 2015 impacted sales in December 2015.

Ford India registered sales of 5,924 units in December, up 57.81 percent from 3,754 units sold last year. It is now gearing up to launch the all-new Ford Endeavour on January 20, 2016. The vehicle will join Ford's existing portfolio of EcoSport, Aspire and Figo hatchback.