New Delhi/Chennai, Oct 1 (IANS) Automobile companies Monday posted mixed sales numbers for September and hoped the festive season will revive their fortunes as banks have started relaxing loan rates.
Emerging out of a lockout at its Manesar facility in Haryana, passenger car market leader Maruti reported a modest increase of 9.8 percent in total sales with 93,988 units as against 85,565 units sold in the same month during the previous year.
According to the company, its domestic sales increased 12.7 percent in the month under review and stood at 88,801 units from 78,816 units sold in the like period of last year.
However, exports in the month under review plummeted 23.1 percent and stood at 5,187 units from 6,749 units sold in September 2011.
Chennai-based Hyundai Motor’s overall sales for September went down 7.3 percent at 53,558 units from 57,804 units sold in the corresponding month of last year.
Domestic sales fell by 14.2 percent at 30,851 units compared to 35,955 units for the same month last year.
However, the car manufacturer’s export went up by 3.9 percent at 22,707 units from 21,849 units which were shipped out last year.
“We expect the suppressed demand would improve on account of festive purchases as the demand peaks during this period,” said Rakesh Srivastava, vice president, national sales, Hyundai Motor.
Tata Motors too reported a decline in sales which went down four percent, including exports, for the month at 75,773 units.
According to the company, its domestic sales of commercial and passenger vehicles declined three percent to 70,332 units from 72,566 units sold in the same month last year.
The company’s sales from exports at 5,441 units in September are lower by 12 percent compared to 6,217 units in the same month last year.
Buoyed by demand for utility vehicles, Mahindra and Mahindra (M&M) reported its highest ever monthly sales in September at 48,342 units.
The sales were a growth of about 10 percent over the same month last year when the company sold 44,137 units.
According to the company, the healthy sales growth comes on the back of passenger vehicles segment sales which zoomed 22 percent.
“We are happy with the performance and growth we have achieved during September 2012 over the festive season month of September 2011,” said Pravin Shah, chief executive, automotive division, M&M.
Shah also gave a positive sales outlook for the festive season as a result of the recent Reserve Bank of India (RBI) decision to cut cash reserve ratio (CRR) rates that has allowed banks to offer lower interest rates on vehicle loans.
“Post reduction in CRR banks have started cutting lending rates and are also looking at reducing vehicle loan rates. We are hopeful of a good performance in the upcoming festive season,” Shah added.
The company’s half-yearly consolidated auto sales numbers from April to September 2012 stood at 267,266 units, up 20 percent over the corresponding period of the last financial year.
The company’s domestic sales stood at 45,263 units during September 2012, as against 41,136 units during September 2011, an increase of 10 percent.
The company added that its four-wheeler commercial segment, which includes the passenger and load categories of vehicle, has registered a growth of seven percent.
