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H1 performance: Lukewarm sales lead SIAM to trim target

H1 performance: Lukewarm sales lead SIAM to trim target

Passenger vehicle (PV) sales grew at a moderate 6.88% in the first half of 2018-19, hit by a slump in July-September, which led industry body Society of Indian Automobile Manufacturers (SIAM) take a conservative outlook for the fiscal signalling a slowdown in the sector. It said that PV growth for the fiscal was now expected to be around 9% as against its earlier projection of being in the range of 9-11%.

“In the first half of the fiscal, PV sales have grown 6.88% and for the second half also while the outlook is positive, sales will be slightly higher or similar,” SIAM president Rajan Wadhera told reporters. “For the entire fiscal, we had a forecast of 9-11% growth but we are now looking more at the lower end of around 9%,” he added.

Wadhera hoped that sales growth would further improve with the onset of festive season. “In the next six months, the growth story of automotive industry will continue to be on the positive side based on strong rural demand and festive season,” he added.

The PV sales declined by 5.61% in September — the biggest decline so far in this fiscal — marking the third straight month of decline.

In total, PV sales dropped by 3.6% in July-September 2018 after a 20% growth in the April-June quarter.

Sales dropped 2.71% in July followed by a 2.46% decline in August.

Domestic car sales also grew 6.8% to 11,69,497 units in the April-September period of 2018-19 as compared with 10,95,077 units in the same period of 2017-18.

Two-wheeler sales during the period rose 10.07% to 1,15,69,770 units. Similarly, total commercial vehicle sales grew 37.82% to 4,87,316 units.

In September, domestic car sales declined 5.57% to 1,97,124 units.

Market leader Maruti Suzuki reported a marginal increase in sales at 1,51,512 units in September. Rival Hyundai Motor India reported 4.49% decline in sales at 47,781 units.

Mahindra & Mahindra reported sales of 21,391 units, down 15.54%, while Tata Motors saw its sales increase 5.98% to 20,491 units during the month.

Honda Cars India reported sales of 14,820 units, down 18.83% as compared with September 2017.

Motorcycle sales, however, rose 7.04% to 13,60,415 units as against 12,70,885 units in the same month last year.

Market leader Hero MotoCorp posted a rise of 9.19% in its domestic motorcycle sales at 6,71,466 units. Rival Honda Motorcycle and Scooter India (HMSI) sold 1,70,978 units, a decline of 6.75%.

Bajaj Auto’s motorcycle sales stood at 2,73,029 units, up 10.35%.

Scooter sales witnessed a decline of 2.91% to 6,66,476 units. Market leader HMSI saw its domestic sales dip 9.58% to 3,49,422 units. Chennai-based TVS Motors sold 1,37,154 units, up 16.06%.

Hero MotoCorp’s scooter sales stood at 77,069 units, down 12.93%.

Total two-wheeler sales in September rose 4.12% to 21,26,484 units.

Commercial vehicles sales were up 24.14% at 95,867 units.

Vehicle sales across categories registered a rise of 3.72% to 25,84,096 units.

By- Kritika Arora

Source: Financial Express