New Delhi, Sept. 2: A majority of car makers reported higher sales in August, a sign that the industry is coming out of the grips of a severe slowdown that saw sales falling for nine consecutive months.
Honda Cars India, Hyundai, Maruti Suzuki India and Ford registered an increase in sales last month, while sales at Mahindra, Tata Motors and Toyota fell compared with the previous year.
According to analysts, sales grew 5 per cent in August to around 1.8 lakh units from 1.71 lakh units last year.
Maruti Suzuki reported a 61.24 per cent increase in sales in August. The company sold 87,323 units against 54,154 units in the same period last year. However, the growth is partly attributed to the low base in August 2012 when a lockout at its Manesar plant had hit production.
Domestic sales rose 51.6 per cent to 76,018 units from 50,129 units a year ago. Sales of cars in the mini segment rose 45.1 per cent to 32,019 units from 22,062 units a year ago.
Sales in the compact segment surged over two-fold to 17,409 units from 6,059 units last year. Exports rose three-fold to 11,305 units from 4,025 units.
Hyundai Motor India Ltd has reported an 11.58 per cent increase in its sales at 52,319 units against 46,886 units in the same month last year.
The company sold 28,311 units in the domestic market in August against 28,257 units a year ago. Exports rose 28.87 per cent to 24,008 units.
“Exports have shown decent growth because of strong demand from non-European markets, while the domestic market continues to witness pressure. We expect the challenge to continue until there is a significant change in macro-economic policies,” senior vice-president (sales and marketing) Rakesh Srivastava said.
Ford India’s total sales increased 6.88 per cent to 11,065 units on the back of compact sports utility vehicle EcoSport against 10,352 units last year.
“A significant customer interest in the recently launched SUV, the all-new EcoSport, helped add up to Ford India’s second-best sales month so far this year,” the company said.
Domestic sales were up 2.14 per cent to 8,008 units, while exports jumped 21.69 per cent to 3,057 units.
However, some continued to face severe pressure because of high fuel prices, high interest rates, rupee fall and weak consumer sentiment.
Mahindra & Mahindra posted a 28 per cent drop in passenger vehicle sales at 15,821 units.
Toyota Kirloskar Motors also saw a 14 per cent drop in sales at 12,007 units against 13,995 units a year ago.
Sales of Tata Motors fell 48 per cent to 11,564 units from 22,311 units last year.