Auto sales falter 16% in Nov over Oct

With the festival season demand tapering off and continuing component shortage, auto sales in November dropped 16 per cent to 12.21 lakh units, as compared with the previous month of October. This is after domestic vehicle sales had touched record numbers for the past four consecutive months, peaking in October (14.60 lakh units).

Overall vehicle sales in the month rose 18 per cent on a year-on-year basis, though exports took a hit with a 4 per cent drop over the same month last year. In October 2010, exports had risen 30 per cent.

According to the Society of Indian Automobile Manufacturers (SIAM), car sales have risen 21 per cent to 1.61 lakh units in November, compared with the same month last year. Over October 2010, however, car sales were lower by 12 per cent. The larger passenger vehicle segment, which includes the car, utility and multi-purpose vehicle segments, saw 22 per cent higher sales.

Mr Sugato Sen, Senior Director, SIAM said, “This month the industry has come down from the festive peak, besides around 2 per cent growth has been lost on component shortage across segments. The good part is that consumer confidence is growing on rising income levels, while the interest rate is still manageable. Government schemes such as payment of arrears for the Sixth Pay Commission and MNREGS have also put more money in the hands of people.”

In November, car market leader Maruti Suzuki posted 29 per cent higher domestic sales at 87,618 units, while rival Hyundai saw sales rise 12 per cent (31,501 units) and Tata Motors recorded a drop of 33.79 per cent (12,234 units).

Two-wheelers

Two wheeler sales rose 18 per cent, with motorcycle sales in the month growing 16 per cent to 7.10 lakh units and scooter sales rising 31 per cent (1.65 lakh units). Market leader Hero Honda saw 10 per cent higher sales at 4.09 lakh units, while Bajaj Auto and TVS Motor sales jumped 19 per cent (1.93 lakh) and 31 per cent (1.39 lakh), respectively.

Commercial vehicles

Commercial vehicle sales also rose 18 per cent, with LCV sales rising 23 per cent in November to 26,359 units, while the medium and heavy commercial vehicle sales also increased 13.35 per cent to 21,955 units. Tata Motors' posted 21 per cent (30,421) sales growth in CVs, while Mahindra's sales also rose 21 per cent 7,582 units. Ashok Leyland's sales dipped 8 per cent to 3,885 units.

Three-wheeler sales rose a marginal 4 per cent, with Piaggio posting a 3 per cent (16,840 units) increase and Bajaj Auto recording flat sales at 15,188 units.

Giving an outlook for the next few months, Mr Sen said, “We expect December to post lower sales as well, but from January sales should again rise and peak in March. We are targeting a total growth for the fiscal at 20-22 per cent and 25 per cent for passenger vehicles.”

He added that the MPV segment is doing well and expected to become a significant market in the future.

On exports, he said that the European car market continues to be down – leading to a 23 per cent drop in car exports. While two wheeler exports also saw a dip, commercial vehicles and three wheelers exports grew 30 per cent and 13 per cent.