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Passenger vehicle sales show sharp rise in July as GST price cut kicks in

Major automobile manufacturers on Tuesday reported a robust growth in sales across segments during July, driven by post-GST price reductions and restocking of vehicles at dealerships.

Mail Today Bureau   New Delhi     Last Updated: August 2, 2017  | 11:59 IST
Passenger vehicle sales show sharp rise in July as GST price cut kicks in

Major automobile manufacturers on Tuesday reported a robust growth in sales across segments during July, driven by post-GST price reductions and restocking of vehicles at dealerships. Market leader Maruti Suzuki India led the pack in the passenger vehicles segment with Ford and Honda Cars also reporting double digit expansion in domestic market sales.

Homegrown auto companies Tata Motors and Mahindra & Mahindra too, clocked a healthy increase in sales. Maruti posted a 22.4 per cent increase in domestic sales at 1,54,001 units as against 1,25,778 in July 2016. The company's growth was driven by compact segment comprising Swift, Estilo, Dzire, Baleno and Ignis which saw a 25.3 per cent increase to 63,116 units in July.

Sales of mini segment cars, including Alto and WagonR, went up 20.7 per cent to 42,310 units, the company said in a statement. Tata Motors said its passenger vehicles sales in the domestic market grew 10.23 per cent to 14,933 units. There was an an improved customer buying sentiment post Goods and Services Tax (GST), Tata Motors President, Passenger Vehicles Business Unit, Mayank Pareek said.

Homegrown utility vehicles major M&M saw a 13 per cent increase in its domestic sales at 39,762 units last month compared to 35,305 units in July 2016. A good monsoon, successful GST rollout and a good runup to the festive season gives the company confidence ofachieving robust growth in second quarter, M&M President Automotive Sector Rajan Wadhera said. Honda Cars India Ltd (HCIL) posted a 21.74 per cent increase in its domestic sales at 17,085 units in July.

It had sold 14,033 units in the same month last year, HCIL said. The post-GST price benefits, healthy monsoon and onset of festive season in many regions from August will give another boost to our sales, HCIL President and CEO Yoichiro Ueno said. Similarly, Ford India reported an 18.96 per cent rise in its domestic sales at 8,418 units last month, Ford India president and managing director Anurag Mehrotra is optimistic going ahead.

"A good monsoon, conducive financing rates and consumer confidence during festival season will provide a good impetus for the industry,'' he said. The country's second largest carmaker, Hyundai Motor India, however, reported a 4.38 per cent increase in its domestic sales at 43,007 units in July. The company had sold 41,201 units in July 2016. Hyundai director sales and marketing Rakesh Srivastava said that strong support from the lowering of prices on account of GST implementation and good monsoon would increase customer confidence and sentiment towards vehicle buying.

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