May sales boom in passenger car segment

The car sales in India in the month of May have witnessed impressive growth from various auto majors, with the likes of Maruti Suzuki, Mahindra & Mahindra, primarily driven by improving macro-economic sentiments and the increasing economic activity in the domestic economy. However, on the commercial vehicles front, Ashok Leyland has posted low growth in sales numbers YoY due to high base effect.

Auto companies are still quite optimistic for forthcoming months with a host of new models lined up for launch. Moreover the heightened expectations of increase in demand on the predictions of good monsoon and increasing domestic sales are keeping their hopes high.

Market leader Maruti Suzuki has reported sales growth of 7.1 per cent YoY from 1.23 lakh units in May compared to 1.15 lakh units in the corresponding month of the previous year led by a decent domestic sales growth of 10.6 per cent. Domestic sales growth was largely supported by compact cars (Swift, Ritz, Celerio, Baleno and Dzire contributing 38 per cent to total sales) segment registering 11 per cent growth during the month. Utility vehicles' sales have grown sharply by 144.2 per cent to 13,596 units, largely led by newly launched Vitara Brezza, and also by Ertiga & S-Cross.

Mahindra & Mahindra’s passenger vehicles segment (which includes UVs, cars and vans) sold 19,635 units in May 2016 as against 18,135 units during May 2015, representing a growth of 8 per cent. CV division also has improved with a 15 per cent rise to 13,109 units. Within the CV division, M&M extended its lead in the LCV segment (below 3.5 tonnes) with sales of 11,852 units and a growth of 15 per cent. Similarly, with a good response to the company’s new Blazo truck range, its medium and heavy commercial vehicles segment sold 501 units in May, registering a growth of 46 per cent. Mahindra & Mahindra Farm Equipment has seen a rise of 19.53 per cent in its tractor sales at 23,018 units in May.

Ashok Leyland has posted sales growth of 6 per cent in the domestic market, and stands at 9,875 units for the month of May 2016. During May 2015, the company sold a total of 9,290 commercial vehicles. Medium & heavy commercial vehicles' sales grew by 8 per cent at 7,469 units last month as against 6,888 units during May 2015. When it comes to light commercial vehicles, it sold 2,406 units in April 2016 which is almost same as corresponding month of the previous year.

Engineering and farm equipment major Escorts today reported 10.1 per cent increase in its tractor sales from 5,331 to 4,841 units YoY. In the domestic market, the company sold 5,252 units, recording a growth of 10.8 percent as against 3,669 units in May 2015. However, its exports continued to fall by 21 per cent and stand at just 79 units.

Eicher Motors' commercial vehicle business has seen a robust sales growth as total sales were augmented by 43 per cent at 5,771 vehicles in May over 4,035 units sold in year-ago period. It’s motorcycle division has registered solid monthly sales numbers, with sales growing by 37 per cent YoY from 35,354 to 48,604 units. The company said exports grew by 86 percent to 1,372 units from 739 units YoY.

Atul Auto is a leading manufacturer of 3-wheeled commercial vehicles in the state of Gujarat. It has reported 0.63 per cent growth in sales for the month of May 2016 at 3,025 units as compared to 3,006 units sold in May 2015. However, the company’s total sales for April-May 2016 have declined by 22.53 per cent and stand at 4,267 units as compared to 5,508 units in the same period last year.

SML Isuzu has reported 37.3 per cent rise in May sales at 1929 vehicles during May 2016 as against 1405 vehicles sold in May 2015. The company had sold 1404 vehicles during April 2016 as against 876 vehicles sold in April 2015.