Leading auto makers post double-digit sales growth in July

Auto majors, including Maruti Suzuki India, Hyundai and Tata Motors, on Sunday reported high double-digit growth in their domestic passenger vehicle sales in July riding on stabilisation of macro-economic factors and better consumer sentiments.

Similarly, Honda, Nissan, MG Motor and Skoda also reported healthy growth in their sales last month leveraging on improved market mood amid prevailing lower coronavirus infection rate, despite supply constraints of semi-conductors.

The country's largest carmaker Maruti Suzuki India's (MSI) domestic sales increased by 39 per cent to 1,41,238 units last month as against 1,01,307 units in July 2020, the company said in a statement.

While sales of mini cars comprising Alto and WagonR stood at 19,685 units as compared to 17,258 units in the same month last year, those of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, rose to 70,268 units as against 51,529 cars in July last year.

MSI said its sales of its utility vehicles, including Vitara Brezza, S-Cross and Ertiga, stood at 32,272 units last month as compared to 19,177 in the year-ago month.

Rival Hyundai Motor India reported 26 per cent jump in its domestic sales at 48,042 units as against 38,200 units in July 2020, driven by strong performance of newly launched model Alcazar and other products like Creta, i20 and Venue.

"A positive growth momentum is clearly visible in the passenger vehicle industry with the stabilisation of macro-economic factors, good monsoons and increase in consumer shift towards personal mobility," Hyundai Motor India Ltd director (sales, marketing & service) Tarun Garg said.

Homegrown auto major Tata Motors also continued its impressive growth momentum in the passenger vehicles segment posting domestic sales of 30,185 units in July, as compared to 15,012 units in the same month last year.

Another player, MG Motor India reported a two-fold increase in retail sales at 4,225 units last month as compared to sold 2,105 units in July 2020.

The company also recorded its highest-ever bookings and retail sales of ZS EV in July.

"A lot of people ask about EV potential in India and my typical answer is: People are ready and they need good solutions/ options from OEMs (original equipment manufacturers).

"One proof point: We booked all-time high 600+ ZS EV in July alone!!," MG Motor India president and managing director Rajeev Chaba said in a tweet.

Elaborating on the overall sales in July, MG Motor India Director (Sales) Rakesh Sidana said the Hector and ZS EV further gained momentum during the month.

"However, the severe shortage of chips is expected to continue for some time and will lead to supply constraints.

"While we expect overall consumer demand to rise, we should also remain cautious of the potential threats posed by the third wave," he added.

Honda Cars India Ltd (HCIL) also reported a 12 per cent rise in domestic sales at 6,055 units in July as against 5,383 units in the same month last year.

"We achieved our production ramp-up from last week of July and have streamlined supplies in line with market activity. Barring few locations, dealer outlets were mostly operational last month, albeit with lesser capacity," HCIL senior vice-president and director (marketing & sales) Rajesh Goel noted.

He added that the market sentiment has improved amid prevailing lower coronavirus infection rate.

"We expect the upcoming festive period will help the industry to maintain this momentum."

Goel, however, said the company would keep a closer watch on the challenges related to the pandemic and rising cost of acquisition of cars due to price hike from this month.

Nissan India also reported a multi-fold jump in its domestic sales at 4,259 units in July, up from 784 units in same month of last year.

"Customer sentiments have improved with opening of most of the markets," Nissan Motor India managing director Rakesh Srivastava said, adding that in July the company achieved its highest sales in the past three years.

"We have increased the production of Magnite with the plants starting third shift operations and are able to serve the pending bookings earlier," he said.

Although the challenge of shortage of semi-conductors and components is continuing, the company's endeavour is to reduce the waiting period of Magnite further, he added.

Skoda Auto India reported over three-fold increase in sales in July at 3,080 units compared to 922 units in July 2020, fuelled by its new compact SUV Kushaq, which was launched with the vision of substantially growing its volumes in India.

"It is very encouraging to see our plan taking shape.

"Despite a challenging environment, we have managed to have a really successful launch, which is in line with our strategic focus and volume expectations," Skoda Auto India brand director Zac Hollis said in a statement.

The company is witnessing "a surge in dealership footfalls and customer enquiries", he said adding,"there is also a multi-fold increase in the requests for new dealerships from the dealer fraternity across India".

Photograph: Ginnette Riquelme/Reuters