Domestic sales sales analysis auto industry continues strong growth momentum in april fy19, auto news, et auto u save gas station grants pass

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In fact, most of the passenger vehicle manufacturers are signaling double-digit growth in the first month of FY2018-19, that is April. Even Toyota Kirloskar Motor that was in the red last fiscal has bounced back. However, Honda Cars India and Ford India have posted a decline, the former as it is awaiting a new model launch and Ford due to reigning high fuel prices that have impacted its sales adversely.

Commercial vehicles are continuing to grow on a low base of last year, aided by infrastructure development and opening up of the mining sector. Last April, the industry was undergoing teething issues related to the transition to the BS-IV emission norms from BS-III and experienced pre-buying in March 2017. Hence, April sales were dented with BS-IV vehicles in short supply.

Gaurav Vangaal, senior automotive forecasting analyst of IHS Markits told ETAuto that FY19 would be a growth year as the negativity had dissipated from the market and the industry had begun generating good sales numbers. With BS-VI to be enforced from 1 April 2020, vehicle manufacturers had just 2 years to sell their BS-IV models.

Cars and vans at 1556 units saw a step up of 51 percent, while UVs saw an uptick of 11 percent to 20371 units. For M&M, it is a bounce back from the single-digit growth of 5.39 percent (248,859 units) posted by its passenger vehicle portfolio in FY18.

Rajan Wadhera, president, Automotive Sector, M&M said, "After a good FY18, we have had a strong start to FY19, having registered a good growth of 22 percent for the month of April 2018. The company has achieved good growth both in the personal and commercial vehicle segments. We have also seen an encouraging response to our recent launch – the new XUV500. Going forward, we are confident of this positive momentum continuing in Q1FY19.”

Another home-grown vehicle manufacturer, Tata Motors’ passenger vehicles domestic sales also kick-started on an encouraging note. The company posted sales of 17,235 units (12,827 units) a growth of 34 percent. The Tiago hatchback maintained its winning streak in cars, while the Nexon drove the UV segment.

Honda Cars India (HCIL), declined 36.85 percent in April 2018 down from 14480 units in April 2017 to the current 9143 units. Honda is about to launch its second generation Amaze sedan on 16 May and has been phasing out the existing model. Its highest selling model has been the new City with sales of 3366 units, WR-V with 2949 units and Jazz with 1747 units. There was no production of the old Amaze in April.

Rajesh Goel, SVP and Director, Sales & Marketing said: “HCIL sales in April are as per plan. We are preparing for the launch of the all new Amaze this month and did not have stocks of outgoing Amaze. Besides, City and WR-V which were launched last year had witnessed new model sales spurt around this time. Both these reasons are reflected in lower wholesales in April this year as compared to last year. It’s a temporary phenomenon. There is a very strong interest from the market for the new Amaze and we are confident that overall sales will be robust after the introduction of the new model.”

Another positive start was made by Toyota Kirloskar Motors (TKM) in the new fiscal with sales of 13037 units in the domestic market up by 5.64 percent. It exported 834 units of the Etios series clocking a total of 13871 units. In FY18, TKM had registered a marginal decline of 1.90 percent with domestic sales pegged at 140,645 units.

N Raja, deputy managing director, TKM said, “This month was quite eventful for us with the bookings opening for the most-awaited product Toyota Yaris. Yaris is loaded with first in segment features and offers great value proposition in terms of best in segment quality, comfort, safety and performance. We look forward to a positive growth momentum in domestic sales in the upcoming month and expect good sales volume for our new entry Toyota Yaris.”

Ford India President and Managing Director Anurag Mehrotra said, "Increasing inflation trajectory which might weigh on customer’s access and cost to credit, coupled with increasing crude prices could lead to passenger vehicle industry growing at low single digits – so far this year."

Yadvinder Singh Guleria, Senior Vice President – Sales and Marketing, HMSI said: “Last April, Honda crossed the 5 lakh units’ mark for the first time and now just one year later, we have breached the 6 lakh units mark too. Honda has for the first time surpassed 4 lakh units’ milestone in a single month in scooter sales while motorcycle sales too have crossed the 2 lakh mark threshold. Not only domestic, exports demand too is stronger than ever before.”

South-based TVS Motor Company grew 21.7 percent to 293,418 units (241,007 units) in total two-wheeler sales. Domestic sales of two-wheelers saw a spurt of 17.6 percent to 241,604 units (205,522 units). Scooter sales saw a rise of 9.6 percent from 81,443 units in April 2017 to 89,245 units in April 2018.

Bajaj Auto reported a 29 per cent jump in overall domestic sales to 229,464 units against 177,887 units in April last year. The company’s domestic motorcycle sales were up 24 per cent at 200,742 units, against 161,930 units during the same period a year ago.

Growth in April 2018 was on the back of macro-economic factors like investment in infrastructure development, improved industrial activity and robust demand in private consumption-led sectors. The feel-good factors in the economy picking up steam also continued to boost market demand for CVs.

Ashok Leyland recorded total sales of 12677 units (7090) during the month under review, with an increase of 79 percent. M&HCVs grew 98 percent with volumes of 8968 units (4532 units) contributing the larger chunk of the total sales. Light commercial vehicles (LCVs) were up 45 percent with sales of 3709 units (2558 units).

In the LCV segment, Maruti Suzuki’s Super Carry continued to make inroads in Tier II and III towns, growing 275.7 percent over a low base of last year to 1544 units. During FY18 it sold 10,033 units. The carmaker plans to step on the gas in terms of expanding its commercial outlets in FY19.