Festive season, fresh model launches put September auto sales higher

Doris Richards
October 3, 2017

In September 2017, Tata Motors passenger vehicles, recorded sales of 17286 units, growth of 18%, over September 2016.

In what will be gladdening news for Tata Motors, both its passenger vehicle division as well as its commercial vehicle operation - the core business and the backbone for the manufacturer - have reported robust sales for September 2017. With a growth of 29 percent in September 2017 compared to a year ago, our domestic CV sales continued to register robust growth for the third consecutive month.

"The total tax incidence (GST + cess) on mid and large-sized cars after new cess rates has increased by just 0.5 per cent if compared to the pre-GST rates, while the same for the utility vehicle is down by 1.5 per cent", according to Shrikant Akolkar, Analyst-Automobiles at Angel Broking. The Goods and Services Tax Council raised the cess on mid-size, large cars and SUVs between 2 per cent and 7 per cent from September 12. Post June, vehicle sales graph had increased and continued to improve ahead of the festive season.

M&HCV sales back in growth laneTata Motors says it sold 12,259 M&HCV trucks (+25%) in September 2017. This segment witnessed strong growth in demand on the back of continuously increasing acceptance of Tata Motors' SCR technology, infrastructure development led by government funding and restrictions on overloading creating greater demand for new high tonnage vehicles, especially for our new launches of 37T multiaxle trucks and 49T tractor trailers.

Sales at market leader Maruti Suzuki rose almost 10% to top 1.5 lakh units.

For Tata Motors, which has recently embarked on an aggressive turnaround strategy to post smart growth and regain market share, its CV sales of 36,679 units will be a shot in its arm.

Despite additional compensation cess in GST announced by the government last month, leading auto makers, who have announced their sales for September, have reported strong numbers for the month.

Second largest auto maker Hyundai achieved a record sales of 50,028 units in September, a growth of 17 per cent, aided by its new mid-size sedan Verna, which fetched sales of over 6,000 units.

On the same page, Honda Cars India's domestic sales grew by 21 percent to 18,257 units from 15,034 units sold in the corresponding month past year.

The company also launched a new version of the S-Cross, its premium SUV on Sunday with prices starting from Rs8.49 lakh up to Rs11.29 lakh (ex-showroom, New Delhi). Launch of the new Verna helped to add 6,000 units. The company had sold 15,034 units in the same month past year, HCIL said in a statement.

"We have seen a good sales momentum due to Navratri and Durga Pooja celebrations for many models that include WR-V, City and Jazz".

The Korean-based company is now mulling expanding its manufacturing capabiities in India as the high base effect put a serious restraint on its growth. "With the festive purchase on full-swing, our sales outlook for the season is very promising", said Yoichiro Ueno, President and CEO, Honda Cars India. The second-largest auto maker in the country, Hyundai, posted its best ever monthly numbers at 50,028 units, growing at 17.4% compared to a year ago, thanks to its newly launched Verna and continued strong demand for the Creta, Elite i20 and Grand i20. "We are happy that our customer demand had minimum impact of the cess hike and the festive season has ushered in positive growth in domestic sales", said N Raja, director and senior vice-president (sales and marketing). In the two-wheeler space, the maker of the Bullet motorcycle, Royal Enfield, posted 22% growth in September with dispatches of 69,393 units.

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