Auto sector reviving? Maruti, Mahindra, Bajaj sales up in Oct vs Sept

Year-on-year sales rise for Maruti Suzuki on festive cheer; fall for Mahindra, Bajaj

car-woman-driving-car Month-on-month sales have picked up for almost all the auto major in India | File

After months of sales dip in the automobile sector, there is some respite in sight as sales have slightly improved for Maruti Suzuki India (MSI). The country's largest carmaker on Friday reported a 4.5 per cent increase in total sales in October compared to the corresponding period last year, likely buoyed by the recently concluded festive season. 

However, with the exemption of Maruti, sales of rest of the automotive majors reported a dip in October compared to last year's figures. At the same time, the month-on-month sales have picked up for almost all the companies, signalling that the worst might be over for the automobile sector. 

Maruti Suzuki

The country's largest carmaker on Friday reported a 4.5 per cent increase in total sales at 1,53,435 units in October, compared to 1,46,766 units sold in the same month last year. Domestic sales also grew 4.5 per cent to 1,44,277 units last month as against 1,38,100 units in October 2018. 

At the same time, compared to the September sales figure of 1,22,640 units, Maruti sold an additional 30,795 units this month. 

The month saw customers prefering compact segment cars over mini vehicles, accoridng to sales figures released by the company. Sales of mini cars comprising Alto, WagonR and newly launched S-Presso stood at 28,537 units as compared to 32,835 units in the year-ago month, down 13.1 per cent. Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, grew 15.9 per cent to 75,094 units as against 64,789 units in October last year.

Mid-sized sedan Ciaz sold 2,371 units as compared to 3,892 units in the same month last year, down 39.1 per cent. Sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, were at at 23,108 units as compared to 20,764 units in the year-ago period, MSI said.

Exports in October were 5.7 per cent up at 9,158 units as against 8,666 units in the corresponding month last year.

Mahindra and Mahindra (M&M) 

Auto major Mahindra and Mahindra (M&M) reported an 11 per cent decline, year-on-year, in total sales at 51,896 units in October. The company had sold 58,416 units in the corresponding month last year. However, the sales rose 19.7 per cent in October, compared to September's 43,343 units. 

As opposed to Maruti, M&M's sales failed to make a comeback in the domestic market. Domestic sales were down 11 per cent at 49,193 units last month as compared to 55,350 units in October 2018. Exports also registered a decline of 12 per cent at 2,703 units as against 3,066 units in the year-ago month.

In the passenger vehicle segment, which includes utility vehicles, cars and vans, the company sold 18,460 units last month as compared to 24,066 units in the same month last year, down 23 per cent.

In the commercial vehicle segment, the company sold 23,582 units as against 24,353 units in the same month a year ago, down 3 per cent.

However, M&M Chief of Sales and Marketing, Automotive Division, Veejay Ram Nakra sounded optimistic. "The festive month of October was excellent for Mahindra, with retail volume exceeding wholesale by approximately 40 per cent. This robust retail performance was contributed by both passenger and commercial vehicles," he said. 

Further, the company's billing numbers are in line with what it had planned for the month, since the objective was to significantly correct its channel inventory, Nakra said. "We hope to see the positive consumer sentiment continue going forward," he added. 

Bajaj Auto 

Two-wheeler major Bajaj Auto reported 9 per cent decline in total sales at 4,63,208 units in October compared to 5,06,699 units sold in the same month last year. But the company's month-on-month sales improved by more than half a lakh compared to just 4,02,035 units sold in September this year. 

Domestic sales stood at 2,78,776 units in October as against 3,19,942 units in the corresponding month last year, a decline of 13 per cent.  Motorcycle sales in the domestic market were down 14 per cent at 2,42,516 units compared to 2,81,582 units in the year-ago month.

Commercial vehicle sales stood at 36,260 units as against 38,360 in the corresponding month last year, a decline of 5 per cent, the company said.

Total vehicle exports in October were at 1,84,432 units as compared to 1,86,757 units in the same month a year ago, down 1 per cent, Bajaj Auto said.

Toyota Kirloskar Motor

Toyota Kirloskar Motor (TKM) on Friday reported 5 per cent decline in total sales at 12,610 units in October compared to 13,245 units sold in the corresponding month last year. 

Domestic sales were down 6 per cent at 11,866 units as compared to 12,606 units in the corresponding month last year, down 6 per cent, the company added. However, the sales improved 15 per cent in October compared to the previous month. 

Exports during the month stood at 744 units as compared to 639 units, a growth of 16.43 per cent, it said. Commenting on the sales performance, TKM Deputy Managing Director N Raja said customer demand witnessed a spike in the festive season especially during Dhanteras and Diwali.

"The boost in customer sentiments has enabled an upward trend in our sales performance as compared to the last few months of slowdown. It was quite encouraging to see the marked improvement in customer orders on account of festive season," he added.

There were higher retail conversions for Innova, Fortuner TRD Celebratory edition and 'Happenin New Yaris' which were introduced to add to the festive fervor, Raja said.

He further said, "We have also seen positive momentum in Glanza sales across India during festive season, this was a positive impetus for us." The company has sold close to 14,000 units of Glanza since its launch in June, Raja added.

On the outlook, he said, "With the positive sales pattern, we are preparing our production system to supply to the sustained customer demand for next month." TKM production is based on a "pull system" which ensures that dealers receive stocks only when they need to refurbish the inventory, Raja said.

(With PTI inputs)