2013, in its entirety, was quite tough for auto companies that operate in India. Market slumps, customer reluctance and rupee depreciation all played their parts to make things difficult for car manufacturers. The auto sector had a weak start to 2013 and ended on the same note. According to latest report for December 2013, car sales fell by 5-7 per cent. Only two auto makers, Maruti Suzuki and Hyundai could manage a single-digit growth. As per market experts, going will not be easy in the new year too, at least for the next 3-6 months till general elections. Two-wheeler companies and other commercial vehicle manufacturers in India are also expected to announce their respective sales reports too over the next few days.
Various factors like high interest rates, weak economic situation and rising fuel prices did not let the passenger car market find going really easy and smooth in 2013. Companies tried to break the ice by giving heavy discounts and freebies in December 2013, but it also did not prove to be much effective against customer reluctance. In the ultimate month, sales fell by 5-7 per cent to around 1.80-1.84 lakh units as against 1.94 lakh units in December 2012.
Maruti Suzuki and Hyundai Motor India managed to post a single-digit growth during the month while other companies like Mahindra & Mahindra, Toyota Kirloskar, and General Motors India posted negative growth. Maruti Suzuki saw a growth of 5.50 per cent in domestic sales for December 2013. Mahindra & Mahindra, Ford India, Toyota Kirloskar, and General Motors India posted a fall in sales by 27.78, 9.91, 11.78, and 19.27 per cent in the same month, respectively.
EcoSport was a success in the compact sports utility vehicle segment. However, this did not improve things for other models that Ford sells in the country. Speaking on the negative growth for the month, Sandeep Singh, Deputy Managing Director and Chief Operating Officer, Marketing and Commercial, Ford India, said, “The market sentiments do not seem to be improving. In the last few months, we have made our best efforts to control inventory both at TKM and at our dealers end.” Sales of Mahindra & Mahindra also fell sharply in the month. The company sold 16,436 units in the last month as against 22,761 units in the corresponding December 2012. Pravin Shah, Chief Executive, automotive division, Mahindra & Mahindra, said, “The auto industry has seen a negative growth due to sustained deceleration in economic activity and consequent weakness in consumer and business sentiments. While the immediate turnaround in the auto industry is not expected without certain policy corrections and support, the worst seems to be over.”
Rakesh Srivastava, Senior Vice President Sales & Marketing, Hyundai Motor India, said that 2013 had been a tough long year for the auto sector in India. However, the company managed to meet its annual target. He added that the recently launched Grand i10 has got a good response, thereby helping the company achieve its set goals for 2013. He put every thing concisely as “Hyundai improved the channels efficiencies, launched new model Grand on new global platform, made strong initiatives in rural & exchange sales to increase its market share to highest level since inception and achieved the annual business plan. In 2014, Hyundai will launch many new products and new initiatives to build further on this positive momentum.”
