New Delhi/Chennai, Aug 1 (IANS) The price reduction in automobiles following the successful roll out of Goods and Services Tax (GST) and the good monsoon spurred vehicle sales last month, said industry officials on Tuesday.
“The benefit of a good monsoon, the successful rollout of GST and a good run up to the festive season, starting from August, give us confidence of continuing a robust growth in Q2,” said Rajan Wadhera, President, Automotive Sector, Mahindra & Mahindra (M&M).
Passenger car major Maruti Suzuki India reported a rise of 20.6 per cent in its monthly sales for July 2017, selling 165,346 units in July from 137,116 units sold during the corresponding month of 2016.
Maruti’s domestic sales edged higher by 22.4 per cent to 154,001 units from 125,778 units.
However, exports inched-up by 0.1 per cent with only 11,345 units shipped out during July 2017, down from 11,338 units sold abroad in the like period of 2016.
The second largest car maker in the country Hyundai Motor India said its domestic sales in the month increased to 43,007 units from 41,201 units in July 2016.
Further, the company reported a month-on-month sales growth of 14.5 per cent due to healthy demand for its automobile models like Grand i10, Elite i20 and Creta.
Rakesh Srivastava, Director – Sales and Marketing, Hyundai Motor India, said: “Hyundai with a growth of 14.5 per cent month on month and 4.4 per cent year on year continued its growth momentum…”
Similarly Tata Motors Ltd reported seven per cent rise in its total sales.
According to the company, the total sales of its passenger and commercial vehicle increased to 46,216 units from 43,160 vehicles sold in July 2016.
Tata Motors’ domestic sales of Tata commercial and passenger vehicles for July 2017 were higher by 13 per cent at 42,775 units from 37,789 units sold during the corresponding month of last year.
“The overall commercial vehicles sales in July 2017, in the domestic market were at 27,842 numbers, higher by 15 per cent over July 2016, due to ramp-up of BS4 production, across segments,” the company said in a statement.
“The company also passed on the benefits of GST to consumers by reducing the prices of its vehicles across all commercial vehicle segments.”
The company exported 3,441 units in July 2017, “a decline of 6 per cent, compared to 5,371 vehicles sold in July 2016, due to drop in volumes in Sri Lanka and Nepal,” the statement added.
The other commercial vehicles major Ashok Leyland Ltd sold 11,981 units last month — up from 10,492 units sold in July 2016.
On its part, SUV major M&M logged six per cent sales growth last month at 41,747 units up from 39,458 units sold during July 2016.
The company’s domestic sales were higher by 13 per cent to 39,762 vehicles during last month from 35,305 units sold during July 2016.
“We have registered a growth of 21 per cent in the passenger vehicle segment and a growth of 13 per cent in overall domestic vehicle sales,” Wadhera said.
Similarly Ford India sold 26,075 vehicles up from 17,742 units sold in the corresponding month last year.
“Despite the administrative challenges associated with the introduction of GST, Ford has continued to grow faster than the industry,” Anurag Mehrotra, President and Managing Director, Ford India, was quoted as saying in a statement.
Two and three wheeler makers too logged good growth last month with Honda Motorcycle & Scooter India growing its sales by 20 per cent to 544,508 units.
On its part, Hero MotoCorp reported a sales of 623,269 units last month up from 532,113 units sold in July 2016.
Two- and three-wheeler maker TVS Motor Company said it sold 271,171 units (two-wheelers 263,336 units, three-wheelers 7,835 units) last month — up from 248,002 units (two-wheelers 240,042, three-wheelers 7,960 units) sold in July 2016.
Post Source: Ians feed