South Korean carmaker Hyundai Motor India posted highest-ever domestic sales in the festive month that was marked by a subdued performance by the segment leader, Maruti Suzuki.
In a market helped by festive demand and positive consumer sentiment, Hyundai sold 50,016 units in the domestic market for the first time in its two decade operations, with the export tally of 14,356 units taking its cumulative sales to 64,372 units in October 2016.
Its new models the Creta SUV and the i20 premium hatchback continue to perform even as the new Elantra sedan contributed better than expected with 1500 bookings to date. "We achieved the fastest domestic sales of 50,000 units mark within 15 months from the earlier milestone of 40,000 units," Y K Koo, MD & CEO Hyundai Motor India Ltd. said.
The fresh salary payouts of 7th pay commission as well as normal monsoon after two consecutive deficient years of rainfall did not augur well for Maruti Suzuki, India's largest car maker. It reported marginal volume growth of 2.2 per cent for October selling 123,764 vehicles during the month than 121,063 cars sold in October last year.
The car segment is expected to grow at 7 per cent in October after a 20 per cent surge in September when companies dispatched vehicles for stock building at dealerships for festive demand.
Tata Motors made some remarkable recovery in the domestic market. It posted its highest monthly sales of 16,311 units in the last four years, 28 per cent higher compared to 12,747 units sold in October 2015.
Japanese carmaker, Nissan Motor India reported domestic sales of 6,108 vehicles in October 2016 versus 3,246 units sold in the same month a year ago. Commenting on the sales results, Arun Malhotra, MD Nissan Motor India said, "Our solid performance and overall growth of 88 per cent in October has been possible with the continued robust performance of the Datsun redi-GO and strong response to the recently launched redi-GO SPORT version."
German Volkswagen posted a 70 per cent growth in October with a monthly sales of 5534 units compared to 3255 units sold in the corresponding month of the previous year.
Japanese Toyota was the only exception to report a decline in volumes last month. Its sales slipped 6 per cent to 11,651 units last month on higher production holidays due to festive period during the month. "In the last two months, our production at plant has been lower than what we had planned due to the unforeseen holidays that were called on account of the unrest in Bangalore in the month of September and many festive holidays in October that impacted overall sales," said N Raja Director Toyota Kirloskar Motor.
Analyst said that passenger cars and two wheelers sales continue to grow last month. "This is backed by positive customer sentiments and better in hand cash flows to support their discretionary spends. Overall we should see good growth this year in all the vehicle categories. Medium and heavy commercial vehicles will bounce back once demand for freight movement picks up," says Abdul Majeed, Partner - Price Waterhouse.
Few companies including M&M, Honda, Renault and Ford did not announce numbers as Tuesday was a holiday.