Indian car companies report mixed sales during January 2013

Saturday 02 February 2013, 13:24 PM by

The Indian passenger car market witnessed muted growth in sales during January this year with many car makers recording their worst ever sales figures in the country. As per reports, the high interest rates and recent price hikes have deterred domestic buyers from investing in new models in 2013. Prominent Indian auto majors, such as Tata Motors, Toyota and Ford made a poor start to 2013 and suffered the worst decline during January this year. On the other hand, Maruti Suzuki, Hyundai and Mahindra and Mahindra, as usual reported a marginal increase in sales last month.

Maruti Suzuki India Limited (MSIL), the country's largest passenger car maker, recorded a 1.06 per cent drop in total sales (domestic and exports) that stood at 1,14,205 units during January 2013. The company's sales in domestic market climbed up by 2 per cent at 1.03 lakh units, as against 1.01 lakh units sold in January 2012. Further, Maruti Suzuki suffered a serious drop of 22 per cent in the number of units exported overseas last month.

Mahindra and Mahindra (M&M) Limited, India's leading utility vehicle manufacturer, reported a surge of 33 per cent in its sales at 26,555 units during January 2013, as compared to 19,975 units sold in the year-ago period. Expressing his views on the impressive sales recorded by the company, Pravin Shah, Chief Executive Officer (CEO), Automotive Division, M&M, said, “The recently announced reduction of 25 bps both in the repo and CRR rates is a positive step and is expected to bring in some desired momentum in the market. We have seen reductions in auto loan rates announced by some banks, which will help improve customer sentiment in the coming months.”

Indian car companies report mixed sales during January 2013 |
Indian car companies report mixed sales during January 2013

Hyundai Motor India Limited (HMIL), the country's largest exporter and second largest car maker, witnessed a 4.25 per cent growth in its total sales during January 2013. The South Korean auto major's sales in India soared ahead by 1.2 per cent at 34,302 units last month, as against 33,900 units sold in January 2012. Commenting on the January 2013 sales figures, Rakesh Srivastava, Vice President (VP), Sales and Marketing, HMIL, was quoted as saying, “The market was subdued on account of macro-economic factors. For Hyundai, the year has started on a positive note with growth in its domestic and export sales. The change in price differential between petrol and diesel prices has increased interest in petrol cars, reflecting in the waiting period for our petrol variants of Eon, i20 and Verna.”

Indian car companies report mixed sales during January 2013.

Tata Motors, the country's largest automobile manufacturer, suffered from its worst decline in sales in January 2013. The company reported a drop of 56 per cent in its passenger vehicle sales at 15,209 units during last month. Reportedly, Tata Motors sold 11,192 units of its compact models- Nano, Indica and Indigo, along with 4,017 units of its utility vehicle line-up, comprising Sumo, Aria, Safari and Venture in the domestic market.

Toyota Kirloskar Motor Private Limited (TKMPL), an Indo – Japanese joint venture partnership between Kirloskar Group and Toyota Motor Corp., witnessed a 23 per cent dip in sales in the Indian auto market last month. The company sold 13,329 units in January 2013, as compared to sales of 17,395 units in the year-ago period. Speaking on the huge plunge in sales on Indian turf, Sandeep Singh, Deputy Managing Director and Chief Operating Officer (COO), Marketing and Commercial divisions, Toyota Kirloskar Motors, was quoted as saying, “The market is still witnessing a slowdown, especially the passenger car segment. The prospects for the second half of 2013 look better, with the budget round the corner.”

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