The Indian Express (Delhi Edition)
Passenger vehicle dispatches: M&M, Toyota defy muted June trend
MAHINDRA & Mahindra (M&M) and Toyota outpaced the rest of the auto pack in June, posting double-digit growth in June while their rivals saw volumes rise in low single-digits.
The passenger vehicle (PV) industry recorded wholesale volumes (company dispatches to dealers) of 340,784 units, as per estimates provided by Maruti Suzuki. This was a growth of just under 4 per cent year-on-year.
Without M&M and Toyota, the industry volumes are down 1 per cent. “The increase (in volumes in June) is coming from the launch of new models from the competition,” Partho Banerjee, head of sales and marketing, Maruti Suzuki said.
Searing temperatures across the north of the country were blamed for the lacklustre performance, making automotive companies keep their showrooms open well past their usual closing time. Maruti Suzuki’s domestic volumes for June grew 3 per cent y-o-y to 137,160 units, driven by its utility vehicles such as Brezza and Ertiga. Its car division saw volume contraction of 8 per cent led by Alto and Spresso.
M&M saw domestic sales growing 23 per cent y-o-y to 40,022 units in June, powered by demand for the newly launched compact sport utility vehicle XUV3X0. Toyota Kirloskar recorded the biggest growth at 41 per cent, selling 25,752 units, one-third of which were made by Maruti. Hyundai and Tata Motors had a disappointing June. The Korean car brand, which is the second largest carmaker in India, recorded nearzero growth during the month, selling just 100 more units than the last June to 50,103 units.
Tata Motors, the country’s third largest PV firm, posted an 8 per cent y-o-y drop in volumes to 43,524 units. This was largely due to a decline in electric vehicle volumes. Kia, the other Korean brand in the country, saw a 10 per cent y-o-y growth in volumes to 21,300 units on the back of demand for the recently launched Sonet SUV.
The PV industry is staring at a supply glut in coming weeks as channel inventory has begun to rise, leading to an unusual increase in discount levels.