Car Sales Post Growth In December 2017; Mahindra & Mahindra Declines

Indian carmakers have posted positive sales growth for the month of December 2017, with Mahindra & Mahindra recording decline of 7 per cent.

Other companies like Maruti Suzuki India, Hyundai Motor India, Tata Motors, and Honda Cars India all have registered year-on-year increase in sales for the said month.

The growth in sales can be attributed to the year end discounts offered by carmakers to expedite stock clearance. Moreover, cars will cost higher from 1 January 2018, as companies have raised the prices to offset input costs.

Maruti Suzuki India

Maruti Suzuki's total domestic passenger vehicle sales went up to 118,560 units, thereby experiencing year-on-year growth of 11.4 per cent. Its passenger cars reported hike of 8.4 per cent, utility vehicles sales increased by 19.9 per cent, and vans posted maximum growth of 23.8 per cent.

In Maruti Suzuki passenger cars segment, while sales of mini and compact vehicles went up by 2 per cent and 23.2 per cent, respectively. However, its mid-size sedan Ciaz's sales declined 35.8 per cent.

Hyundai Motor India

This South Korean automaker witnessed marginal growth of 0.3 per cent for December 2017 domestic sales at 40,158 units. However, during calendar year 2017, Hyundai posted highest-ever domestic sales of 527,320 units.

Commenting on 2017 Performance, YK Koo, MD & CEO, Hyundai Motor India said, “The calendar year 2017 has been an year of performance for Hyundai Motor India surpassing its business plan of 2017 registering highest-ever domestic volume of 527,320 units, a growth of 5.4 per cent on strong performance of the newly launched super sedan Next Gen Verna along with Grand i10, Elite i20 and Creta.” 

“The positive momentum in urban and rural retail sales supported with strong after-sales service and low-cost of ownership has gained customer confidence to become most loved and trusted brand in India.”

Mahindra & Mahindra

Out of the top five car manufacturers, Mahindra & Mahindra has posted de-growth of 7 per cent, with utility vehicles' sales declining by 9 per cent and cars + vans showing positive double digit growth of 22 per cent.

In spite posting negative sales, the company regained its position as third largest carmaker in India, which it lost to Tata Motors in November 2017 after a gap of five long years.

Commenting on future prospects for the company, Rajan Wadhera, President, Automotive Sector, M&M said, “Global automotive trends such as electric vehicles and shared mobility will be key indicators for 2018 and at Mahindra we would continue to be a key and innovative player.”

Tata Motors 

In December 2017, Tata Motors' Passenger vehicles sales performance was at 14,180 units as against 10,827 units, a growth of 31% over last year. The company recorded the highest ever December sales for passenger vehicles since 2012 and the retail sales for this month was also the highest in last 6 years. 

The utility vehicle segment recorded a growth of 406 per cent over last year on the back of strong demand of the newly launched Nexon and Hexa. Cumulative sales growth of Passenger Vehicles in the domestic market (April-December 2017) was at 129,229 units compared to 112,539 units, a growth of 15 per cent over last year.

Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, “We are happy to start the new year with a strong growth momentum. With a growth of 31 percent in December 2017, we have recorded highest ever sales in the month of December since 2012, backed by our robust portfolio of new generation products like Tiago, Hexa, Tigor and Nexon.”

“In December 2017, while total bookings were highest since 2012, retail sales grew 74 percent over last year – highest since December 2011. The new year holds tremendous opportunity and we remain committed to turnaround the business. In our quest to be the most loved passenger vehicle brand, we will continue our efforts to meet the growing demand and provide best-in-class products and services to our customers,” added Pareek.

Honda Cars India

Honda Cars India registered monthly domestic sales of 12,642 units in December 2017 against 10,071 units in the corresponding month last year, registering a growth of 26 per cent.

During December 2017, Honda City again regained its position as the highest selling model for the company. In November 2017, Honda’s crossover vehicle WR-V surpassed its premium sedan City as the company’s best selling vehicle. 

Yoichiro Ueno, President and CEO, Honda Cars India said, “2017 has been a milestone year for Honda Cars in India, as our best seller Honda City completes 2 decades of unparalleled success in India. Honda City has emerged as the highest selling mid-size sedan during 2017.”

“HCIL experienced robust growth during 2017 backed by good demand for all our products across segments, especially the Honda City & WR-V. As we welcome the new year 2018 we would like to take this opportunity to thank all our customers for the continued support to the Honda brand, and look forward to another fruitful year ahead,” he added.

Toyota Kirloskar Motor

Toyota Kirloskar Motor sold a total of 10,793 units in the domestic market in December 2017, thereby posting a year-on-year de-growth of 15 per cent. In the month of December 2016, Toyota Kirloskar Motor sold a total of 12,747 units in the domestic market.

For calendar year 2017, Toyota Kirloskar has recorded a growth of 5 per cent in the annual sales. The company has achieved the milestone of recording the highest ever IMV (Innovative International Multi-purpose Vehicle) sales in 2017 of 97,000 units (73,000 units of Innova and 24,000 units of Fortuner) in India. 

N Raja, Director & Sr. Vice President, Sales & Marketing, Toyota Kirloskar Motor said, “We are happy to have closed the year on a positive note with both our legendary products Innova and Fortuner doing really well in the domestic market. With maximum utilization of Plant I capacity to 97 per cent we were able to cater to the increase in customer demand of Innova and Fortuner.”

“The year 2017 was dynamic for the auto industry with series of disruptions from demonetization to GST roll out. Despite the challenges and a temporary slowdown, industry hit back with a steady growth in sales.”

Ford India

Ford India sold 5,087 vehicles in domestic wholesales compared to 5,566 vehicles the corresponding month last year, thereby registering de-growth of 9 per cent.

Ending the year with sustained growth, the combined domestic wholesales and exports in 2017 stood at 262,784 vehicles compared to 238,098 units in 2016 – recording its highest production & wholesale volume ever. 

“2017 saw the Indian automotive industry overcome challenges precipitated by the implementation of GST, increased inflation, after-effects of demonetization, rising crude prices and volatile regulatory environment to register growth,” said Anurag Mehrotra, president & managing director, Ford India.