Passenger Vehicles and Two-Wheeler sales have grown at a fast face in May 2017 as compared to May 2016. The sales have recovered to a significant extent for the Two Wheelers segment of the Automobile industry as demonetization has had a severe impact on them since November 2016. Two-Wheeler sales tend to be more in cash as compared to that of passenger vehicles.
Introduction of new models in the Passenger Vehicles segment and continued preference for Scooters in the Two Wheelers segment has helped post sales better than market expectations.
Contrary to the expectation of growth the Commercial Vehicle sales have declined drastically in the month of May 2017 as compared to May 2016. Even exports have declined sharply for Commercial Vehicles.
The industry produced a total 4,668,048 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April-May 2017 as against 4,313,445 in April- May 2016, registering a growth of 8.22 % over the same period last year.
The sale of Passenger Vehicles grew by 11.73 % in April-May 2017 over the same period last year. Within the Passenger Vehicles, Passenger Cars, Utility Vehicle and Vans grew by 11.15 %, 16.19 % and 0.37 % respectively in April-May 2017 over the same period last year.
The passenger vehicle sector has registered consistent growth for many months now, driven by consumer demand for new passenger cars as well as utility vehicles(UVs). Sports Utility Vehicles (SUVs) have been the accelerator and currently account for a fourth of all passenger vehicle sales in India. In the month of May 2017 UVs accounted for 27.75% of total passenger vehicles sold.
Maruti Suzuki India powered last month’s sales with a total of 1,30,248 (up 15.10 %) units sold. Due to rise in demand for the Baleno and Vitara Brezza models, the company has increased its passenger vehicle market share by 3.23% from 48.60% to a humongous 51.83% within a year.
The overall Commercial Vehicles segment declined by (-) 14.40 % in April-May 2017 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) declined by (-) 43.63 %, while Light Commercial Vehicles grew by 8.28 % in April-May 2017 over the same period last year.
The sales of the Medium and Heavy Commercial Vehicle (MHCV) segment of the Automobile industry has been dwindling because of the unpredictability this sector has faced for a number of years due to various Government policies as well as its concern for the rising pollution levels in the country. In addition, the heavy fines imposed on overloaded vehicles also failed to garner new vehicle sales in terms of making the segment profitable.
Three Wheelers sales declined by (-) 24.84 % in April-May 2017 over the same period last year. Within the Three Wheelers, Passenger Carrier sales registered a de-growth of (-) 31.69 %, while Goods Carrier grew by 7.15 % in April-May 2017 over April-May 2016.
Two Wheelers sales registered a growth at 9.58 % in April-May 2017 over April-May 2016. Within the Two Wheelers segment, Scooters and Motorcycles grew by 24.67 % and 4.04 % respectively, while Mopeds declined by (-) 10.01 % in April-May 2017 over April-May 2016.
Hero MotoCorp, the country’s largest two wheeler maker continued aggressive sales in fiscal 2017-18 with sales of over 0.5 million units for the second month in a row. The company reported an 8.7% increase in sales during the past month which stood at 6,33,884 units as compared to 5,83,117 units sold in May 2016.
Honda Motorcycle and Scooter India (HMSI) Pvt Ltd sold over 0.5 million two-wheelers in May 2017. This is the second month in a row, Honda has posted sales of over 0.5 million units. In all, Honda sold a total of 5,37,035 units in May 2017, compared to 4,36,328 units in May 2016, growing by over 23%. Scooter sales alone grew 24%, selling 3,34,165 scooters in May 2017, compared to 2,68,429 scooters sold in May 2016.
The Two Wheeler segment of the auto industry is poised to see positive sales over the next few months especially with forecasts of normal rainfall and a host of new launches.
In April-May 2017, overall automobile exports grew by 18.01 %. While Passenger Vehicles, Three Wheelers and Two Wheelers registered a growth of 12.61 %, 35.76 % and 19.98 % respectively, while Commercial Vehicle exports declined by (-) 33.27 % in April-May 2017 over the same period last year.
Passenger vehicle exports from India touched all-time high at 7,58,830 units in the FY 2016-17 rising 16.2% on robust sales of cars and utility vehicles.
The highest export of passenger vehicles was recorded in FY 2016-17 at 6,53,053 units. Growth of passenger vehicles exports was led by cars segment which stood at 6,02,341 units in 2016-17 as against 5,32,630 units in 2015-16, up 13.09%. Utility vehicles also posted a growth of 29.82% in exports at 1,54,153 units as compared to 1,18,741 units in the previous fiscal.
Hyundai Motor India continued to be the largest exporter at 1,67,120 units, up 3.02%, while Ford came second with 1,58,469 units at a growth of 42.94 units.