Car sales growth in November

With so many months of sliding down in the business at last now the popular car makers have finally been able to stem the slide by posting a moderate growth in sales in November this year. Tata Motors, General Motors, Hyundai, Toyota, Mahindra & Mahindra are few car manufacturing companies of India who were facing this challenge.

By observing the sale of this month Tata Motors showed a healthy sale of 81 percent in surge in numbers. Even companies like Mahindra & Mahindra, Toyota Kirloskar, GM also witnessed a strong growth on the back of new launches and diesel versions. Mahindra, Toyota and Volkswagen showed positive numbers. For Mahindra, which recently launched SUV XUV500, there was an increase of 44.5% at 17,813 units, while Toyota's volumes were up 166% at 13,956 units, led by diesel versions of Etios sedan and Liva hatchback. For Volkswagen, the growth was 46% at 6,722 units.

In case of Maruti Suzuki the sales, however, decreased in the market, in November as it continued to battle production disruption. Its local sales dropped 19% in the previous month 82,870 units as against 102,503 in November, 2010. Domestic sales for Hyundai Motor India (HMIL), the second-largest car maker, rose to 35,000 units against 31,540 units in November last year. Its sales lowered by 5% last month.

Tata Motors, on the other hand, reported a significant domestic sales growth of 76% in November in its passenger vehicle segment as it sold 28,774 units as compared to 16,363 units in November last year. It sold 6,401 units of the Nano against 509 units in the same month last year.

Mahindra & Mahindra’s passenger vehicles division sold 17,813 units in November this year compared to 12,323 units same period last fiscal.

Companies including Nissan and Toyota Kirloskar Motors gained
from the new launches. Nissan sold 2,688 units in November (1,079 units), on the back of recently launched Sunny sedan, which accounted for 1,131 units. Toyota sold 13,956 units (5,242).

Ford India is also not behind the sales chart for November presented that the graph has arisen up to 11 percent. The entire sales of the car for Ford India go to 8,322 units in the month of November against 7,504 units last year.

This growth might be seen as modest but when compared to other competitors, Ford India’s growth has remained consistent despite high interest rate on auto loans, rising fuel cost and inflation.

Analyst comment-

Analysts feel the demand was limited to certain product segments and new launches. “Tata Motors’ new Nano and new Indica Vista EV2 helped company get strong volumes. M&M growth was backed by the excitement around XUV 5OO,” said Yaresh Kothari, analyst, Angel Broking.

“The sales numbers are much better than expectations. Maruti’s diesel portfolio did well. The UV segment remained buoyant where M&M benefited the most. Tata Motors was a surprising out-performer,” said Deepak Jain, analyst, Sharekhan, a brokerage.