Maruti Suzuki shares up over 1% post August sales number

Maruti’s Korean rival Hyundai Motor India Limited (HMIL) reported a 9% rise in volumes to 47,103 units, paced by demand for the newly launched sedan Verna.

Shares of Maruti Suzuki India (MSI) on Friday gained over 1 per cent after the company reported 23.8 per cent increase in total sales in August.

The company’s domestic sales stood at 1,52,000 units, up 26.7 per cent from 1,19,931 units in August a year ago, MSI said in a statement. During the day, it rose by 1.76 per cent to Rs 7,838.65. Demand for the five compact cars (Swift, Celerio, Ignis, Baleno and Dzire) soared 62.4% to 74,012 units (August 2016: 45,579), which is indicative of strong demand for the premium Baleno hatchback and the new Dzire sedan.

“For the month of September we have good visibilty, we should be exporting around 140-150 thousand units in the month of September itself, and closing the half year about 6.7 lakh units in exports”. The mini (Alto, WagonR) segment, however, remained flat at 35,428 vehicles.

Two-and three-wheeler major Bajaj Auto reported a rise of three per cent in its total sales, including exports, for the month under review to 335,031 units.

Tata Motors posted 14% increase in its passenger and commercial vehicle sales (including exports) at 48,988 vehicles against 43,000 vehicles sold in August 2016.

The utility vehicles – Gypsy, Ertiga, Vitara Brezza and S-Cross – as usual provided firepower for monthly sales: at 21,442 units sold and 27.6% YoY growth (August 2016: 16,806). Hyundai, the second biggest player grew at nine per cent. July sales had grown 15 per cent. The passenger vehicles segment (which includes utility vehicles, cars and vans) accounted for 19,325 vehicles against 18,246 vehicles. Commenting on the performance, Rajan Wadhera, president, Automotive Sector, M&M, said: “We are happy with our performance in August”. “Our brands continue to gain traction despite several external challenges”. Srivastava expects good monsoon rains and a strong product portfolio will help drive festive sales.

Honda Cars India seems to be on a dream run.

Similarly, Honda Motorcycle & Scooter India’s sales breached the 6 lakh-mark in a “single month for the first time”.

Industry major Hero MotoCorp achieved its highest-ever sales for any single month during August 2017 at 678,797 units. The City sold 5,538 units, followed by the WR-V (5,200), Jazz (2,747), Amaze (1,928), BR-V (1,247), Brio (640), CR-V (55) and the Accord Hybrid (10).

Volumes at French vehicle maker Renault continue to decline and is learnt to have seen its sales shrink by 26 per cent in August.

Manufacturer’s of two-and-three wheelers also logged healthy sales growth last month. The growth was bolstered by the strong demand for the Tata Tiago and the Tata Tigor.

Production constraints, however, dragged down volumes at Toyota Kirloskar Motor (TKM) and Ford India, which registered declines of 6% (to 12,017 units) and 9% (to 7,777 units), respectively, in August. While enquiries continue to be significantly high, due to production constraints the company has not been able to cater to the enhanced demand. Yet we had production limitations which held us back from catching up with the high demand. The company said the current waiting period for Innova has gone up to around 6-8 weeks.

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