Car sales in fast lane, two wheelers under strain

1. Car Sales in Fast Lane,
Two-wheelers under Strain
Auto sector continues its strong run post festival season with
cos estimated to have dispatched about 2.33 lakh cars in Nov
compared to 2.11 lakh units in same period year ago

2. Contd…
the Indian car bazaar, which got into a festive mood in October, has continued the
strong run in November as the industry is estimated to have posted yet another
month of double-digit growth. Other segments of the automobile market too
showed strong performance, though two-wheeler sales remained under
pressure.Based on industry numbers, manufacturers are estimated to have
dispatched about 2.33 lakh cars in the past month, a more than 10% increase
compared with the year-earlier month’s 2.11 lakh units.
Sales of utility vehicles too have gathered momentum, with a 17% jump led by
strong demand for Hyundai’s Creta and the Mahindra TUV 300. What came in as a
surprise though was a surge in tractor sales. However, industry executives were not
willing yet to predict a turnaround in the rural economy.
One of the reasons for this was the sluggish demand for two-wheelers, which is
also considered as barometer of the health of the rural economy. India’s largest
two-wheeler maker, Hero MotoCorp, posted near flat sales, while at its nearest
rival, Honda Motorcycle & Scooter, domestic sales fell nearly 12%.

3. Contd…
Rajesh Jejurikar, president and chief executive-farm equipment and two-
wheeler division at Mahindra & Mahindra, said the company’s tractor sales
rose 47% from a year earlier. Citing improved sentiment due to the festive
season for the sales growth, he said: “We hope for the rural economy to
steadily revive going forward.“ Rival Escorts Agri Machinery also posted
12.2% growth in tractor sales after a long time, hinting at a change in the
declining trend in the tractor segment. Escorts' tractor sales had dropped
31.5% in the previous month.
The commercial vehicle segment also continued strong growth.Ashok
Leyland's sales grew 16% in November yearover-year, while VE Commercial
Vehicle reported nearly 26% growth. The car market continued to be
buoyant. However unlike in October, when a majority of manufactures had
posted growth, sales at only a select few car makers have grown in the past
month. At market leader Maruti Suzuki, domestic sales grew 10.6%.

4. Contd…
“A wholesale growth of over 10% in domestic market is in line with company’s target of
double-digit growth for FY 2015-16,” said RS Kalsi, executive director for marketing and
sales. “During November we continued our focus on retail sales in the festive season. We
were able to post a growth of over 22% during this year’s festive season vs the previous
year.” A dozen launches were seen in the last few months and the slew of new cars is what
driving the volumes. The Creta drove Hyundai Motor India’s volume up 23%, while the TUV
300 helped Mahindra & Mahindra post growth of 38%. At Renault India, the Kwid small car
helped post a more than twofold increase in sales. The Figo and Figo Aspire drove Ford
India’s sales up 55%. The macroeconomic environment of low interest rates and relatively
benign fuel prices is conducive for this growth to sustain in the coming months, said
Rakesh Srivastava, senior vice president of sales and marketing at Hyundai Motor India.
Industry players said if not for the Diwali holidays and disruption in dispatches in Chennai
due to heavy rains, which is estimated to have impacted 10,000 to 15,000 units, the
growth in car sales could have been much higher. Renault, which has a factory in Chennai
with partner Nissan, is sitting on 50,000 bookings for the Kwid as the rains have hurt
operations. It has managed to deliver only 10,000 units so far.

5. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015