Reality check for auto sales in November after an upbeat Diwali

As automakers announced their sales numbers for November 2015, it has become amply clear that while most have clocked double-digit growth year-on-year, the sharp momentum seen in October 2015 as a result of Diwali and Dhanteras has not continued. Nevertheless, the mood is good and that augurs well for the months to come.

Maruti Suzuki India's domestic has reported domestic sales of 1,10,599 units – a 10.6 per cent increase from last year's figures in the same period (November 2014: 100,024). However, compared to the company’s handsome 24.7 per cent year-on-year growth in October 2015 with sales of 1,21,063 units, the November sales seem slightly muted, albeit Diwali sales had much to contribute to that high number. While demand for the entry-level Alto and WagonR hatchback dipped last month to 35,981 units, down 4.7 per cent year-on-year (November 2014: 37,746), Maruti’s compact cars (Swift, Celerio, Baleno, Dzire and Ritz) saw sales of 44,626 units, a good 19.5 per cent increase (November 2014: 37,339).

Hyundai Motor India has recorded domestic sales of 43,651 units, up 23 per cent from the 35,511 units last year. Rakesh Srivastava, senior VP (Sales and Marketing), Hyundai Motor India said, “Hyundai achieved a cumulative 4 million domestic sales milestone with strong performance of 43,651 units this month growing by 23% over last year on the strength of strong demand for its product portfolio led by the Creta, i20 and Grand i10.”

Mahindra & Mahindra has announced that its passenger vehicles division (which includes UVs, cars and vans) sold 19,662 units in November 2015, up 36 per cent from last year's 14,473 units. “The festive season coupled with new product launches as well as moderation in interest rates has seen the auto industry post a positive growth during the last couple of months. I believe speedy implementation of GST will help and have a long-term impact on the competitiveness of Indian auto industry,” according to Pravin Shah, president & chief executive (Automotive), M&M.

Honda Cars India registered monthly domestic sales of 14,712 units in November 2015 against 15,263 units in the corresponding month last year. The City continued to be a popular buy among consumers, with sales of 6,342 units. The Amaze sedan was the next bestseller with 4,106 units. While the new Jazz sold 3,367 units, the Brio sold 461 units, the Mobilio 393 units and the CR-V sold 43 units. From April-November 2015, Honda has clocked cumulative domestic sales of 1,32,095 units compared to 1,16,705 units for the corresponding period last year, marking a growth of 13 per cent.

Toyota Kirloskar Motor (TKM) sold 10,278 units in the domestic market, down 15.6 per cent compared to a year ago (November 2014: 12,175). According to the carmaker, the Etios series has seen a cumulative growth of 9 per cent from January to November 2015, when compared to the same period the previous year. New Camry sales have exceeded 1,000 units from January to November 2015 and posted a growth of 65 per cent for November 2015; the Camry hybrid constitutes 90 per cent of this sale.

In November 2015, Tata Motors’ passenger vehicles recorded a year-on-year decline of 13 per cent at 10,517 units, compared to the 12,021 units in November 2014. While the overall sales of passenger cars in November 2015 were lower by 11 per cent at 9,172, compared to 10,286 units in November 2014, the compact car segment (without sedans) witnessed a growth of 33 per cent at 5,821 units in November 2015, compared to the 4,376 units in November 2014. UV sales declined by 22 per cent to 1,345 units in the month. Cumulative sales of all passenger vehicles in the domestic market for the fiscal are 88,321 units, an increase of 10 per cent over last year.

Led by the growing demand for the Kwid, Renault India saw a growth of 144 per cent with monthly domestic sales of 7,819 units in November 2015 as against the 3,201 units in the same period last year.

Speaking on the company’s sales performance, Sumit Sawhney, country CEO and managing director, Renault India Operations said, “When we launched the Kwid in India, we committed to launching a new era and benchmark in the Indian automotive industry. The outstanding feedback and unprecedented response to the car have proved us right. The growing acceptance by first-time buyers indicates that the Kwid is truly an aspirational product, offering an outstanding value proposition.”

The carmaker says it has substantially increased its sales and service network reach in India. From 14 sales and service facilities in mid-2011, currently it stands at 190, and will reach 240 facilities by the end of next year, which includes expanding its presence in existing and new markets in urban, semi-urban and rural India.