Demonetization effect in the month of November 2016 continued to contribute to the low base for growth in the month of December 2017 as well. The sales of Commercial Vehicles have shown a stellar recovery in the month of December 2017. 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 December 2017 following the growth in the month of October and November 2017.
The industry produced a total 21,415,719 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycle in April-December 2017 as against 19,247,352 in April-December 2016, registering a growth of 11.27 percent over the same period last year.
The sale of Passenger Vehicles grew by 8.13 percent in April-December 2017 over the same period last year. Within the Passenger Vehicles, Passenger Cars, Utility Vehicle and Vans grew by 4.19 percent, 19.43 percent and 6.86 percent respectively in April-December 2017 over the same period last year.
Maruti Suzuki India sold 118,560 units (+11.4%), compared to 106,388 units a year ago. With total sales (domestic and exports) between April-December 2017 totalling 1,317,801 units, a year-on-year growth of 14.2 percent (April-December 2016: 1,154,164), the carmaker is 250,802 units short of crossing its best-ever fiscal sales of 1,568,603 units achieved in FY2018.
For the month of December 2017 sales for the entry-level hatchback duo of the Alto and Wagon R sold 32,146 units point to slow growth of 2 percent (December 2016: 31,527). Acting as a strong buffer is the quintet of compact cars (Swift, Celerio, Ignis, Baleno and Dzire) and utility vehicles (Gypsy, Ertiga, S-Cross and Vitara Brezza) which continue to beef up overall numbers. At 53,336 units sold (December 2016: 43,295), the five cars posted 23.2 percent YoY growth albeit much less than November 2017’s 32.4 percent growth. UVs, due to the overwhelming demand for the Vitara Brezza, sold 19,276 units, up 19.9 percent (December 2016: 16,072).
Tata Motors registered total PV sales of 14,180 units, recording notable 31 percent growth (December 2016: 10,827). The numbers are its highest ever wholesale sales in the last month of a calendar year, since CY2012. The popularity of its Tiago hatchback and the recently introduced Nexon compact SUV has also led the retail sales to be the highest ever in the last six years. Strong customer demand for crossovers and SUVs has led to Tata’s UV offerings including the Hexa, Safari Storme and the Nexon help augment its UV segment sales by 406 percent in December (albeit on a low year-ago base). Its cumulative sales for the first nine months of FY2018 between April-December stood at 129,229 units (April-December 2016: 112,539), posting growth of 15 percent.
Mahindra & Mahindra (M&M) registered PV sales of 15,543 units in December, recording a decline of 7.47 percent (December 2016: 16,799). The company sold a total of 14,514 UVs in December 2017, a 9 percent de-growth (December 2016: 15,957). On the other hand, its passenger cars including the KUV100, Verito and the Verito Vibe sold 1,029 units in total, posting 22 percent growth (December 2016: 842).
The overall Commercial Vehicles segment grew by 15.19 percent in April-December 2017 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) increased by 9.27 percent and Light Commercial Vehicles grew by 19.29 percent in April-December 2017 over the same period last year.
Ashok Leyland has reported a 79.41 per cent jump in total sales at 19,253 units in December 2017. The company had sold 10,731 units in the same month last year. Sales of medium and heavy commercial vehicles zoomed 81.62 per cent to 15,950 units from 8,782 units in the year-ago month. Light commercial vehicle sales rose 69.47 per cent to 3,303 units from 1,949 units in December 2016.
Tata Motors’ Commercial Vehicles domestic sales in December 2017 were at 40,447 units, a growth of 62% compared to 24,998 units in December 2016. The commercial sector has shown good recovery after the headwinds and regulatory challenges of last year. The steady production ramp-up of the new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors have led the growth. The cumulative sales performance of Commercial Vehicles (April-December 2017) in domestic market was at 269,536 units, a growth of 17%, over last year and continues to grow month on month.
Three Wheelers sales grew by 7.89 percent in April-December 2017 over the same period last year. Within the Three Wheelers, Passenger Carrier & Goods Carrier sales registered a growth of 8.25 percent and 6.39 percent respectively in April-December 2017 over April-December 2016.
Two Wheelers sales registered a growth at 11.76 percent in April-December 2017 over April-December 2016. Within the Two Wheelers segment, Scooters and Motorcycles grew by 18.52 percent and 9.77 percent respectively, while Mopeds declined by (-) 6.15 percent in April-December 2017 over April-December 2016.
Total motorcycle sales for Bajaj Auto rose 13% to 0.228 mn units in December 2017 over December 2016. Hero MotoCorp sold 472,731 units in December 2017, against 330,202 units in the corresponding month (Dec 2016), registering a strong growth of 43%. Royal Enfield, the two-wheeler division of Eicher Motors reported 16.67 per cent growth in total sales at 66,968 units in December.
In April-December 2017, overall automobile exports increased by 13.01 percent. Two and Three Wheelers Segments registered a growth of 17.75 percent and 30.27 percent respectively, while Passenger Vehicles and Commercial Vehicles declined by (-) 3.40 percent and (-) 18.10 percent respectively in April-December 2017 over the same period last year.