Indian carmakers are most likely going to end the year 2017 with smiling faces, as most of the manufacturers have posted double digit domestic sales growth during the month of November 2017.
As many as seven carmakers have ended November 2017 with a bang. This is to specify here that monthly sales figures of Volkswagen India, Renault India, Nissan India, and Skoda India have not been released, as of now.
November 2016 was a depressing month for the OEMs as they were fighting with the immediate consequences of demonetisation, announced by Prime Minister Narendra Modi on 8th of the same month.
How long the carmakers will be able to sustain this momentum is the moment of question that can only be answered in the coming months.
Talking about the figures, Rajeev Singh, Partner, Deloitte India said, “The monthly auto sales report for November saw most of the Indian auto players post double-digit growth numbers due to both strong pull of festive demand as well as the strength of buoyant rural markets. Comparisons with November 2016 may show numbers this year on the higher side due to demonetization impact on vehicle last year, automakers are expected to continue this sales momentum into the New Year."
"The major fight is expected between the home grown manufacturers especially in the SUV segment which is witnessing strong competition due to launch of new products and changing customer preferences."
Maruti Suzuki India
Country's largest car manufacturer sold a total of 144,297 passenger vehicles, thereby registering growth of 14.3 per cent. While, Maruti Suzuki's passengers posted healthy growth of 11.3 per cent, its utility vehicles and vans grew by 34 per cent and 10.8 per cent, respectively.
The company's compact car and utility vehicles segment continue to bear fruits for the carmaker in Indian market.
Shrikant Akolkar (Research Analyst- Auto, Angel Broking) said Maruti Suzuki’s November sales are in line with expectations.
Maruti Suzuki reported total 14.1 per cent growth in its total vehicles. Domestic PV volumes grew by 14.3 per cent yoy. The utility vehicle volumes grew by 34 per cent, fastest in the last four months. While entry level, Mini segment reported 1.8 per cent yoy drop in the volumes, compact range vehicles reported 32.4 per cent yoy growth fuelled by Baleno and Ignis.”
“Overall, the numbers are along our expectations and we believe that with the robust order book and new launches, company is expected to report healthy volume growth going ahead. We have an accumulate rating on the stock with price target of Rs 9,495.”
Hyundai Motor India
This South Korean automaker banks on its best-selling models to grow in Indian market. Strong performance of Hyundai Motor India’s Grand i10, Elite i20, and Creta led to volume of 44,008 units, during November 2017, which is a growth of 10 per cent.
This success was further accentuated by the strong demand for newly launched Next Gen Hyundai Verna, which received over 20,000 bookings and more than 150,000 enquiries in a span of two months.
Due to strong pull of festive demand on the strength of buoyant rural markets, Hyundai is expecting to build on this positive momentum with a cumulative retail sales of 200,000 units for the period September to December 2017, said Rakesh Srivastava, Director - Sales & Marketing.
Tata Motors
In November 2017, Tata Motors passenger vehicles sales performance was at 17,157 units, growth of 35 per cent, over last year. This was led by the strong growth momentum of new generation Tata cars.
To meet the growing demand of its recently launched compact SUV, Tata Nexon, Tata Motors has ramped up its production and in November 2017, the company rolled out the 10,000th Nexon from its Ranjangaon facility.
During the same month, Tata Motors expanded its market by entering the Andaman Nicobar islands and opened a new full-range passenger vehicle dealership in Port Blair.
Mahindra & Mahindra
The passenger vehicles segment (which includes UVs, Cars and Vans) sold 16,030 vehicles in November 2017, as against 13,198 vehicles during November 2016, a growth of 21 per cent.
While Mahindra utility vehicles' sales increased by 20 per cent, its cars and vans posted growth of 37 per cent.
Rajan Wadhera, President, Automotive Sector, Mahindra & Mahindra said, “We are happy to be in a positive growth phase for November 2017, which is usually a lean period post the festive season. We expect our growth momentum to continue on the back of some recent refresh launches as well as the positivity of our product portfolio.”
In November 2017, the company launched the facelift of its best-selling SUV Scorpio. The new Mahindra Scorpio comes with an enhanced mHawk engine, features new 6th generation Borg Warner Turbo Charger, easy shift 6-speed transmission, reverse parking camera with dynamic assist, 1-touch lane change indicator, auto window roll-up, and latest generation braking system with 9.1 Bosch ABS.
Toyota Kirloskar Motor
The automaker sold a total of 12,734 units in the domestic market thus clocking a year-on-year growth of 13 per cent. The company has sustained a positive growth since last three months.
Toyota’s legendary products Innova Crysta and Fortuner continue to witness strong demand in the market, and the company is ascribing their positive growth to them primarily. Demand for Etios Lava has also contributed towards the overall domestic sales growth, says N. Raja, Director & Sr. Vice President, Sales & Marketing, Toyota Kirloskar Motor.
The manufacturer is hoping to end the year with this positive trend in customer demand.
Honda Cars India
The carmaker registered monthly domestic sales of 11,819 units in November 2017 against 8,029 units in the corresponding month last year.
Yoichiro Ueno, President and CEO, said, “Last year HCIL sales in November were severely affected by demonetization. Although November volumes this year have shown improvement over last year, the market is still to recover fully from the GST related changes affecting consumers at large.”
Recently, the company has not launched any new model in the market. Its last launch was during August 2017 of Honda Jazz ‘Privilege Edition’ for the festive season.
Ford India
November was all about the New Ford EcoSport. Driven by recently introduced compact SUV new Ford EcoSport, Ford India's domestic wholesales in November rose to 7,777 vehicles from 6,876 units a year ago.
Said Anurag Mehrotra, President & Managing Director, Ford India, “We are confident of maintaining this sales momentum getting into 2018, despite macroeconomic indicators suggesting volatility in inflation and crude prices impacting the industry growth over the near-medium term.”