June car sales in slow lane; Maruti & Hyundai move slowly

Update: 2015-07-02 01:47 GMT
Honda Cars India and Tata Motors posted <g data-gr-id="52">double digit</g> growth while Mahindra & Mahindra and Toyota reported <g data-gr-id="56">decline</g> in sales during the month.

Country's largest carmaker Maruti Suzuki said its domestic sales increased 1.6 <g data-gr-id="55">per cent</g> in the month to 1,02,626 units as against 1,00,964 units a year ago.

Sales of the compact segment comprising Swift, Estilo, Ritz, Dzire rose 24.4 <g data-gr-id="65">per cent</g> to 45,701 units in June this year as against 36,741 units last year.

However, sales of mini segment cars, including Alto and WagonR, declined 27.9 <g data-gr-id="58">per cent</g> to 34,336 units compared with 47,618 units in the year-ago period.

Rival Hyundai Motor India Ltd (HMIL) sold 36,300 units last month as compared with 33,514 units in June 2014, up 8.3 <g data-gr-id="53">per cent</g>.

HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said: "In a market bearing low traction consistent demand of Elite i20, Grand, <g data-gr-id="70">Xcent</g>- Hyundai volume grew by 8.3 per cent and with the upcoming launch of global SUV Creta, we are confident of sustained growth."

Tata Motors sales of passenger vehicles in the domestic market in June rose 30 per cent at 10,281 units as against 7,911 units in the same month previous year.

The sales of the company's passenger cars in June were higher by 44 <g data-gr-id="51">per cent</g> at 8,516 units as compared to 5,933 units in June 2014.

"For Tata Motors, the growth in sales has been driven by Zest, Bolt and the GenX Nano. We are also seeing a lot of traction in our older models like Indica and Indigo after repositioning them in smaller cities," Tata Motors President, Passenger Vehicles Business Unit Mayank Pareek told PTI.

He, however, said there was a concern as the sales growth for the overall industry was slowing down from April to June.

"Negative sentiments over poor monsoon and postponement of purchases by customers waiting for reduced interest rates on vehicles loans are primary reasons for the slowdown in car sales," 
he said.

Honda Cars India reported a 12.65 <g data-gr-id="50">per cent</g> increase in its domestic sales at 18,380 units in June.
Utility vehicle major Mahindra & Mahindra saw its domestic sales decline 9 per cent to 33,282 units last month as against 36,452 units in the same month of last year.

On the outlook, M&M Chief Executive (Automotive Division) Pravin Shah said: "With a normal monsoon till date, an overall positive sentiment and a slew of new launches in the automotive industry, we expect buoyancy in demand going forward."

Toyota Kirloskar Motor reported 12.87 per cent decline in its June sales at 10,464 units as compared to 12,010 units in the same period of last year.

"There was limited production last month on account of planned annual plant shut down scheduled from May 29 to June 6 for regular maintenance," the company said.

Hinduja Group flagship company Ashok Leyland reported 41 per cent hike in total sales of commercial vehicles at 10,461 units in June.

In the two-wheeler segment, Honda Motorcycle & Scooter India (HMSI) reported 7.94 per cent increase in total sales at 3,48,793 units in June.

Chennai-based TVS Motor Company reported 8 per cent increase in total sales at 2,22,099 units in June. <g data-gr-id="63">Niche</g> bike maker Royal Enfield's domestic sales surged 49 <g data-gr-id="64">per cent</g> to 36,597 units last month from 24,519 units in June 2014. 

Yamaha domestic sales rise 26% 
 Yamaha Motor India on Wednesday reported 26 per cent increase in domestic two-wheeler sales at 51,432 units in June. The company had sold 40,666 units in June 2014. In the export markets, the company sold 14,708 units in June 2015 as compared to 12,819 units sold in the same month last year achieving a growth of 15 <g data-gr-id="93">per cent</g>. Overall sales of the company stood at 66,140 units in June, compared to 53,485 units sold in June 2014, an increase of 24 <g data-gr-id="94">per cent</g>. Commenting on the sales performance, Yamaha Motor India Vice President (Sales & Marketing) Roy Kurian said: “This month we witnessed brisk growth due to our robust product line-up and new launches during the year so far.” 

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