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New launches provide stimulus to slowing passenger car sales

New launches provide stimulus to slowing passenger car sales

Three big launches in July and August - Hyundai Creta, Maruti S-Cross and Honda Jazz - seem to have bucked the trend and help car firms post impressive sales.

Even as the passenger car segment continues to grow a slow pace, three big launches in July and August - Hyundai Creta, Maruti S-Cross and Honda Jazz - seem to have bucked the trend and posted impressive sales.

Maruti Suzuki India's S-Cross model, which was launched on 5 August, sold 4,600-4,700 units in August 2015, as per company data. The vehicle comes with a price tag of Rs 8.34-13.74 lakh.

According to a senior executive of the company, a further 10,000 have already been booked. The S-Cross is the first model being retailed exclusively through NEXA, the company's premium outlet.

Hyundai has managed to sell 7,345 units of Creta, its new compact SUV, in August. The vehicle was launched on 21 July and the company reported sales of 6,783 units during that month. Creta is priced between Rs 8.6 lakh and Rs 13.6 lakh. A company spokesperson said Creta sales have helped Hyundai cross sales of 40,000 units in a month for the first time in India. The company sold 40,505 units in August, a jump of 20 per cent over last year.

The spokesperson added that Hyundai Active i20, Hyundai Elite i20 and Creta have together accounted for 42 per cent (17,800 units) of August sales.

Meanwhile, the third-generation Honda Jazz, which was launched on 8 July 2015, clocked sales of 5,404 units in August, down from 6,676 units in July. Honda sold just one less Jazz than its highest selling model City during the month, as per company data.

Anita Sharma, Assistant Vice-President, Marketing, Honda Cars India Limited said that the monthly capacity of Rajasthan plant, which manufactures both the Jazz and City models, is currently only 10,000 units.

"We have already been producing more than the capacity. Though we have planned capacity expansion of the plant from 1.2 lakh units a year to 1.8 lakh units, it would be completed only by next year," she said.

The company registered sales of 15,655 units in August 2015 against 16,758 last year, a year-on-year decline of 6.6 per cent, as per company data.