CARMAKERS DRIVE HOME 9% GROWTH IN MAY
Sales of passenger vehicles (cars, vans and utility vehicles) in the domestic market remained in the double digit growth lane in May, helped by double-digit growth at Maruti Suzuki, Honda and Tata Motors.
After 14.7 per cent growth in April, first month of financial year 2017-18, sales in May are estimated to have grown close to ten per cent, in spite of the possibility of a price cut in some segment of cars from July 1, when the national goods and services tax (GST) takes effect.
Maruti Suzuki, the biggest in car sales, reported a 15.1 per cent jump in domestic sales of passenger vehicles (cars, utility vehicles and vans) in May. It sold 130,248 units in the domestic market against 113,162 units in the same month last year. Most product segments at Maruti reported strong growth. The utility vehicle segment jumped 66 per cent to 22,608 units; the mini segment (Alto and WagonR) grew 18 per cent to 39,089 vehicles. The compact segment (Baleno, Ignis, Dzire, etc) saw an increase of 10 per cent to 51,234 units.
The company’s stock hit a new high of ~7,249 at the BSE early on Thursday but closed at ~7,143, down almost one per cent from Wednesday.
Korea's Hyundai’s sales grew 1.6 per cent to 42,007 units in May. It said the new Xcent posted growth of 30 per cent YoY. Rakesh Srivastava, director (sales & marketing) said the company overcame challenges posted by the implementation of GST.
Utility vehicle major Mahindra & Mahindra saw a three per cent increase in sales last month to 20,290 units. Rajan Wadhera, its president (automotive), said they had a robust outlook, given the favourable monsoon projection and the government's focused investment in the rural sector.
Honda Cars said its May sales grew a little more than 13 per cent to 11,278 units, owing to the demand for the new City and WR-V.
Tata Motors did not announce numbers but it was learnt to have grown 26 per cent to 10,855 units in May, riding on Tigor volumes.
Japan’s Toyota reported a decline of 13 per cent vis-à-vis May last year. N Raja, director and senior vice-president (sales & marketing) pointed to two factors.