Costlier raw materials to turn vehicles expensive

Most auto-makers end 2010 with brisk sales.

Auto sales continued their brisk run in December, but customers will now have to pay more for their vehicles.

On Saturday, Tata Motors announced that it was hiking prices of the Indica and the Indigo car range by Rs 3,000-15,000 depending on the model. The utility-vehicle range, comprising the Sumo, the Grande MK II, the Safari and the Xenon, will also become dearer by Rs 8,700 to Rs 14,500. The company's trucks and buses will now be costlier by Rs 1,500 to Rs 30,000.

Other automakers are expected to follow suit in the coming days, given the raw materials cost pressure. Mahindra & Mahindra, which also made public its numbers, indicated that it would be increasing prices of its vehicle range shortly.

The industry is, however, confident that market sentiment will not be affected as a result. “Petrol prices have gone up by nearly Rs 6 a litre since June, but its consumption has still grown by 15 per cent,” sources said. Indications are that the Centre could hike diesel prices by Rs 2/litre in the coming days.

Vehicle sales

Tata Motors reported sales of 67,441 vehicles (buses, trucks and cars) in December, up 31 per cent from 51,627 units in the same period last year. Domestic sales accounted for a lion's share with 61,632 units. Of these, commercial vehicles totalled 41,926 (33,519) units, while cars took up the balance 19,977 (15,661).

The company had reason to feel pleased with the Nano numbers at 5,784 units. Sales of the people's car had plummeted to 509 units last month, which led experts to write it off as a costly gamble. Jaguar and Land Rover continued to do good business, said the Tata Motors release.

M&M also had a good run in December with sales totalling 34,062 units, a 42 per cent jump from 24,001 units in 2009. The passenger vehicles segment (which includes the UVs and the Logan) grew by 28 per cent to 15,601 (12,212) units. The four-wheel pickup segment, comprising the Maxximo and the Gio, was up 47 per cent with sales of 10,161 (6,933) units.

Hyundai Motor India reported sales of 47,228 units in December, a tad higher than 47,217 units in 2009. Domestic numbers accounted for 26,168 (22,252) units, while exports fell 15.6 per cent to 21,060 (24,965) units. The company's sales for the calendar crossed the six-lakh unit mark.

Toyota Kirloskar Motor, whose Etios sedan has garnered over 17,000 bookings, finished December with 6,359 units, five per cent higher than 6,029 units last year. The company has targeted 70,000 numbers of the Etios this calendar.

Driven by its successful compact car Figo, Ford India has reported 184 per cent growth in sales in 2010. The company has sold 83,887 units during the period against 29,488 units last year.

Two-wheeler segment

In the two-wheeler space, TVS Motor Company reported sales of 168,359 bikes and scooters in December, up 41 per cent from 119,701 units in the previous year. Three-wheeler sales totalled 3,431 (1,212) units.

Honda Motorcycle & Scooter India said its sales were up 20 per cent at 140,642 units. Scooters took up 76,263 units while motorcycles followed with 53,821 units. Exports accounted for the balance 10,558 vehicles.

Its Japanese counterpart, India Yamaha Motor, clocked sales of 34,839 units, up 70 per cent from 20,529 units in December 2009.