No slowdown seen in December car sales
Source: TOI & Company website
NEW DELHI: Domestic Car sales have started the New Year with a bang, backed by strong growth numbers in December, 2009.
The country’s largest player Maruti Suzuki reported a 36% growth as it sold 71,000 units against 52,029 units in December 2008. Year-end discounts and a lower base did the magic for the company as it happened in case of other car makers also.
Maruti’s portfolio of small cars — Alto, Wagon-R, Zen, Swift, Ritz and A-Star — saw sales going up 42% in the month at 52,236 units against 36,831 units. Sales for April-December, 2009 grew 22% at 625,408 units against 510,659 units in the corresponding comparable period.
Maruti Suzuki’s Close rival Hyundai also reported a healthy 43% jump in December sales at 22,252 units against 15,602 units in the same month in 2008.
“With the overall economic scenario improving, the Indian automotive market seems to have stabilised but we must thank the government for timely intervention last year. The stimulus package certainly helped the automotive industry and we hope the government will continue with this at least for some more time,” Hyundai India’s marketing and sales director Arvind Saxena said. While 2009 started on a difficult note for auto companies, the stimulus packages announced by the government and easing of retail finance rates — combined with new model launches — ensured faster pick-up in demand.
The overall improvement in the economy and a spate of positives, like salary hikes for government employees and recovery in stock market, saw demand going up strongly for new vehicles. After declining for four consecutive months, auto sales had started picking up from February 2009 and have continued to remain strong since then.
For Mahindra & Mahindra (M&M) and General Motors, December was a month of over 100% growth. GM’s figure increased 104% as it sold 8,258 units against 4,041 units in December 2008, making it the highest-ever monthly sales figure achieved by the company since its inception. The December sales included 4,147 units of mini car Chevrolet Spark, 616 units of the newly-launched sedan Cruze and 859 units of Chevrolet Beat.
“With consumer optimism slowly getting back, GM India should be able to register double-digit growth this financial year,” the company said.
M&M’s pack of utility vehicles — like Scorpio, XYLO, Bolero and pick-ups — saw a growth of 120% at 16,999 units against sales of 7726 units in December 2008.
In two-wheelers, Hero Honda continued its strong showing and registered a growth of 74% on sales of 3.75 lakh units, against 2.15 lakh units in December 2008. TVS, the third-biggest two-wheeler maker of the country, said domestic sales stood at 1.02 lakh units, a rise of 42% over 72355 units.
Luxury car maker Skoda Auto reported a 52% growth in its sales during December last year at 1,113 units compared with 732 units in the corresponding month previous year. The company hopes to show a better performance this year with further revival of the Indian economy.
With economy is expected to grow around 7.5-8% in 2010 and more introdution of new models the car sales growth will be better, according to experts in the automobile sector. Exports markets will also be revived as the global economy is coming out of recession and a recovery is seen in 2010, they added. Continuation of stimulus package will help further.