Festivals give auto sales Godspeed

NEW DELHI, Sep 03, 2009 (The Economic Times - McClatchy-Tribune Information Services via COMTEX) --
HYMZY | Quote | Chart | News | PowerRating -- The country's carmakers led by market leader Maruti Suzuki posted impressive sales figures in August, raising hopes that the bullish consumer sentiment will result in a blockbuster year for the industry. Maruti Suzuki, which makes every second car sold in India, and the country's largest bikemaker Hero Honda posted significant increases in sales to record their best figures in the current financial year.

Industry executives and analysts said the demand was likely to remain robust for the remaining part of the year on the back of declining interest rates on car loans and improved customer sentiment. "We are entering the festival season and expect increased number of enquiries and sales than the previous year," said Arvind Saxena, senior vice-president (marketing and sales) with Hyundai Motor India, the country's second largest car manufacturer.

Maruti Suzuki sold 69,961 cars in August, almost a third more than the 54,113 units it sold in the same month last year. It also posted its highest ever exports, which almost trebled to 14,847 units from the year-ago period. A large chunk of the sales was recorded in the A2 segment that comprises Alto, Wagon R, Estilo, Swift, A-Star and Ritz.

Hyundai Motor India posted a 13 percent jump in domestic car sales in August at 24,401 units, while exports rose by a modest 9 percent to 25,120 cars over the same month last year.

Analysts, however, expressed caution. "Though the overall sales outlook is expected to be strong for the rest of the year, some companies in the premium car segment may face challenges after the festive month of October," an auto analyst with Morgan Stanley said, requesting anonymity.

Tata Motors sold 17,364 vehicles in August 2009, 11 percent more than the year-ago period. The company sold 2,501 Nanos in August and the sales of its flagship Indica jumped 24 percent to 9,598 cars. However, sales of its Indigo sedan range dropped 41 percent, while the utility vehicles range comprising of Sumo and Safari dropped 22 percent.

Utility vehicle maker Mahindra & Mahindra posted a 17 percent increase in August sales to 21,410 units, on the back of high demand for its Xylo multi-utility vehicle.

Makers of premium cars also witnessed higher volumes. Premium car maker Honda Siel Cars India posted a modest sales increase of 4 percent to 4,102 cars in August over 3,945 cars sold during the corresponding month last year. Its flagship model, City sedan, continued to perform well with 2,536 units sold in August, while recently launched Jazz hatchback's 1029 units were sold in the same period.

Czech car maker Skoda Auto India posted a 33 percent growth in sales to 1,463 cars in August 2009. Hero Honda, the country's largest two-wheeler maker, sold 4.15 lakh units in August. The company expects to record higher sales during the forthcoming festive season.

"We are likely to exceed our highest monthly sales of 6 lakh units during the months of Dusshera and Diwali. The buoyant economy and improved customer sentiment will push sales in the coming months beyond the festival season," Hero Honda's senior vice-president (sales & marketing) Anil Dua said.

Chennai-based TVS Motors posted an 11 percent increase in sales at 1.26 lakh units in August. However, the company reported 2.25 percent fall in motorcycle sales to 51,127 units in the same period. Yamaha Motor sales jumped 63 percent to 19,508 bikes in August 2009 from 11,974 bikes in August last year while other Japanese two-wheeler maker Suzuki Motorcycle India sales increased 18 percent to 13,030 units in August.

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