The Automobile industry has reported sales figures for the month of March 2017 and for the Financial Year ended March 2017. The growth has been impressive for Utility Vehicles in the Passenger Vehicles segment and for Scooters and Mopeds in the Two Wheeler segment. Commercial Vehicles have shown recovery to some extent but Medium and Heavy Commercial Vehicles segment have grown marginally on a year on year basis.
Passenger and Commercial Vehicles have shown some decent growth in exports but the overall auto industry export sales have declined due to decline in sales of Two and Three Wheelers.
The Union Budget announced tax cuts for the Rs.2.5 lakh to 5 lakh slab which would increase the disposable income in the hands of the middle class people. The implementation of the 7th Pay Commission and decent monsoon in the year should give a boost to automobile demand in the near future and help for the lost ground due to demonetization.
The industry produced a total 25,316,044 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April-March 2017 as against 24,016,599 in April-March 2016, registering a growth of 5.41 percent over the same period last year.
The sales of Passenger Vehicles grew by 9.23 percent in April-March 2017 over the same period last year. Within the Passenger Vehicles, Passenger Cars, Utility Vehicles and Vans grew by 3.85 percent, 29.91 percent and 2.37 percent respectively during April-March 2017 over the same period last year.
Maruti Suzuki India reported 8.1% rise in total sales in March at 1,39,763 units as against 1,29,345 vehicles in the same month last year. The company’s domestic sales increased 7.7% during the month to 1,27,999 units as against 1,18,895 units in March 2016. For 2016-17 fiscal, the company posted a 9.8% jump in total sales at 15,68,603 units, against 14,29,248 vehicles in 2015-16. It turned out to be the company’s best ever year in term of sales. Its domestic sales rose 10.7% at 14,44,541 units during the last fiscal as compared to 13,05,351 during the 2015-16 financial year.
The overall Commercial Vehicles segment registered a growth of 4.16 percent in April-March 2017 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) grew by 0.04 percent and Light Commercial Vehicles grew by 7.41 percent during April-March 2017 over the same period last year.
Tata Motors reported an 8% increase in total sales in March at 57,145 units as compared to 53,057 units in the same month last year. Cumulative sales of the company for the 2016-17 fiscal stood at 5,42,561 units, up 6% over 5,11,705 vehicles sold in 2015-16. Domestic sales of Tata Motors’ commercial and passenger vehicles grew by 10% to 51,309 units in March, as compared to 46,701 units in the same month of the previous year. Sales of passenger vehicles in the domestic market grew 84% to 15,433 units last month on the back of robust sales of hatchback Tiago.
Ashok Leyland has reported total sales of 18,682 units in March 2017 compared to 16,702 units in March 2016, recording a growth of 12%. For the period, April – March 2017, total sales stood higher by 3% at 145,066 units compared to corresponding period of previous year.
Three Wheelers and Two Wheelers
Three Wheelers sales declined by (-) 4.93 percent in April-March 2017 over the same period last year. Passenger Carrier sales declined by (-) 8.83 percent and Goods Carrier sales grew by 12.75 percent in April-March 2017 over April-March 2016.
Two Wheelers sales registered a growth at 6.89 percent during April-March 2017 over April-March 2016. Within the Two Wheelers segment, Scooters, Motorcycles and Mopeds grew by 11.39 percent, 3.68 percent and 23.02 percent respectively in April-March 2017 over April-March 2016.
Bajaj Auto reported a decline of 11% in its total sales, including exports, for March 2017. The total sales during the month under review fell to 272,197 units from 305,800 units reported during the corresponding month of 2016. Total domestic sales in March stood at 169,279 units — down 17 per cent — from 204,281 units sold during the like month of last year. Overall exports during March were a tad higher by a per cent to 102,918 units from 101,519 units shipped out during the corresponding month of 2016.
Hero MotoCorp reported a marginal increase in sales at 6,09,951 units in March. The company had sold 6,06,542 units in March 2016. The two-wheeler major said its sales during the 2016-17 fiscal stood at 66,63,903 units, the company’s highest-ever sales in a financial year. It had retailed 66,32,322 units in 2015-16.
In April-March 2017, overall automobile exports declined by (-) 4.50 percent. While Passenger Vehicles and Commercial Vehicles exports registered a growth of 16.20 percent and 4.99 percent respectively, exports of Three Wheelers and Two Wheelers declined by (-) 32.77 percent and (-) 5.78 percent respectively in April-March 2017 over April-March 2016.