Demonetization effect in the month of November 2016 contributed to the low base for growth in the month of November 2017. Particularly the sales of two wheelers rose significantly for most of the companies such as Hero MotoCorp, Bajaj Auto and Eicher Motors as most of the purchases happen on a cash basis as compared to the other segments such as Passenger Cars and Commercial Vehicles. As the effects of demonetization were felt in the months following November 2017 the sales growth would tend to remain robust due to the low base effect.
Domestic sales for Light Commercial Vehicles, Utility Vehicles (Passenger Car Segment) and Scooters (Two Wheeler segment) continued to maintain their robust double digit growth in the month of November 2017 following the growth in the month of October and September 2017.
The industry produced a total 19,486,412 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April-November 2017 as against 17,818,193 in April-November 2016, registering a growth of 9.36 percent over the same period last year.
The sale of Passenger Vehicles grew by 8.46 percent in April-November 2017 over the same period last year. Within the Passenger Vehicles, Passenger Cars, Utility Vehicle and Vans grew by 4.69 percent, 19.95 percent and 4.69 percent respectively in April-November 2017 over the same period last year.
For the month of November Maruti Suzuki sold 145, 300 units compared to last year’s figure of 126,325. It saw a rise of 32 per cent in the compact segment featuring cars like the Swift Dzire, Baleno, Swift hatchback and Ignis. The mid-size segment of the manufacturer saw a 26 per cent increase.
Tata Motors showed impressive growth as well in the month of November 2017. Its sales figures jumped 58 per cent compared to last year–largely owing to the fillip by Tigor, Tiago and Nexon which saw a 35 per cent jump in the passenger vehicle segment.
Mahindra and Mahindra reported an 18 per cent increase in total sales at 38,570 units in the month of November 2017. In the domestic market, its sales grew 21 per cent to 36,039 units last month compared to 29,869 in November 2016. Exports declined 6 per cent to 2,531 units against 2,695 units in the year-ago month.
The overall Commercial Vehicles segment grew by 10.60 percent in April-November 2017 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) increased by 1.19 percent and Light Commercial Vehicles grew by 17.07 percent in April-November 2017 over the same period last year.
Ashok Leyland has reported a 51 per cent jump in total sales at 14,460 units in November 2017. The company had sold 9,574 units in the same month last year. Sales of medium and heavy commercial vehicles rose 54 per cent to units from 6,928 in the year-ago month. Light commercial vehicle sales grew 44 per cent to 3,819 units from 2,646 units in the same time period.
Three Wheelers sales increased marginally by 1.32 percent in April-November 2017 over the same period last year. Within the Three Wheelers, Passenger Carrier & Goods Carrier sales registered a growth of 0.35 percent and 5.51 percent respectively in April-November 2017 over April-November 2016.
Two Wheelers sales registered a growth at 9.61 percent in April-November 2017 over April-November 2016. Within the Two Wheelers segment, Scooters and Motorcycles grew by 16.15 percent and 7.62 percent respectively, while Mopeds declined by (-) 7.26 percent in April-November 2017 over April-November 2016.
Bajaj Auto saw a sales jump of 21 per cent with its motorcycles business witnessing an 11 per cent growth. Honda motorcycles and Scooters saw a 56 per cent jump with its scooters business seeing a 39 per cent jump and a six percent increase in exports.
Hero MotoCorp clocked 605,270 units in the month of November 2017, registering a growth of 26% over the corresponding month last year (November 2016) when the company had sold 479,856 units.
In April-November 2017, overall automobile exports increased by 11.94 percent. Two and Three-Wheeler Segments registered a growth of 17.48 percent and 21.29 percent respectively, while Passenger Vehicles and Commercial Vehicles declined by (-) 3.69 percent and (-) 23.49 percent respectively in April-November 2017 over the same period last year.