Maruti, M&M rev up sales, Tata Motors down

The country’s car market has managed to show some promise this month, despite the prevailing economic slowdown.

Market leader Maruti Suzuki India (MSI) and utility vehicle maker Mahindra and Mahindra (M&M) have revved up their car sales during September, while Tata Motors’ total sales decelerated a bit over the same month last fiscal.

MSI posted its best performance ever, with its domestic sales growing 12.7 per cent from the year-ago period and M&M’s passenger and commercial vehicle sales stood at 45,263 units, up by 10 per cent, while Tata Motors’ total sales of both commercial and passenger vehicles, including exports, in September 2012 were 75,773 vehicles, lower by 4 per cent, over September 2011, as per the statements issued by respective companies seperately.

Other companies are pinning their hopes on the Dassera festive season which is round the corner and thereafter, during the Diwali season to help revive their fortunes. Overseas automotive sales were muted.

Maruti’s exports dropped 23.11 per cent to 5,187, M&M’s exports grew 3 per cent to 3,079 units and Tata Motors’ exports at 5,441 vehicles in September 2012, are lower by 12 per cent, compared to 6,217 units in the same month, last year.

Industry observers maintain that Maruti’s overall performance was aided by the popularity of its new multi-utility vehicle Ertiga that was launched in April; the company sold 7,224 units in September. The passenger car segment saw a modest growth of 3.4 per cent to 68,957 units. The entry-level sedan Dzire drove numbers in the segment, with sales of 11,697 units, registering a growth of 24.3 per cent.

Buoyed by demand for utility vehicles, M&M’s passenger vehicle business grew 22 per cent to 23,808 units. The company makes utility vehicles like the Quanto, Xylo, Scorpio and XUV 5OO as well as three-wheelers and trucks. The four-wheeler commercial segment registered a growth of 7 per cent to 14,417 units. The company expects a sales bump during the festive season as banks have started relaxing loan rates, M&M Chief executive Officer (Automotive Division) Pravin Shah said, adding, “We are happy with the performance and growth that we have achieved during September 2012 over the festive season month of September 2011.”

In contrast, Tata Motors’ passenger vehicle sales for September 2012 at 21,652 were lower by 18 per cent in the year-ago period at 26,319. Some consolation was from Tata Nano sales higher by 87 per cent at 5,491, as compared to 2,936 sold in September 2011.  

Its Indica range sales were at 7,936 units, lower by 23 per cent, over 10,282 sold in the same month last fiscal, while the Indigo range recorded sales of 3,706 units, lower by 52 per cent last  September. Also, Tata Sumo, Safari, Aria and Venture range sales were 4,519, which is lower by 15 per cent over 5,308, sold in September 2011.

Among others, General Motors (GM) India continued to post declining sales, which were down 36.13 per cent to 7,403 units. “The sales are not on expected lines as the overall market continues to remain sluggish due to increase in fuel prices, negative market sentiment and various other factors,” GM India Vice-President P Balendran said, adding, “However, we expect the market to show some improvement closer to the festive season.”

Consequent to the cut in domestic banks’ cash reserve ratio (CRR) by the RBI, banks have started cutting lending rates and looking at reducing vehicle loan rates which should help macros in the sector.