Strong rural demand helps two-wheeler cos record robust sales
Strong rural demand and rising popularity of scooters helped twowheeler makers increase sales in December even as commercial vehicle sales plummeted in a slowing economy. Two-wheelers are the only bright segment in the Indian automobile industry that is going through one of the longest steaks of slump, and industry experts don’t expect a turnaround before the general elections this year.
“The Indian auto industry is facing its most challenging times,” Sugato Sen, deputy director general at the Society of Indian Automobile Manufacturers (SIAM), said. “This is one of the longest spells of negative sales and all segments with the exception of the two-wheelers have declined in this fiscal.” SIAM expects a market turnaround only after a new government comes to power later this year. Hero MotoCorp, the world’s largest two-wheeler company by volumes, reported a 3% year-on-year fall in December sales, but its former partner Honda recorded a 36% jump in sales.
Honda Motorcycle & Scooter India was powered by a 54% rise in scooter sales at 1.71-lakh units. The Japanese firm’s motorcycle sales, too, grew 18% to 1.25-lakh units last month. Despite its slide in December, Hero posted its best-ever calendar year sales in 2013, selling 61.83-lakh bikes and scooters, up from 61.20-lakh two-wheelers in the previous year. Hero’s sales for the festive quarter of October to December rose 7% to 16.80-lakh units.
A 38% rise in scooter sales to 41,817 units helped TVS Motor Company stay positive in December, while Delhi-based Yamaha Motor India posted a whopping 58% jump in sales on the back of robust demand for its Ray and Ray Z scooters. The company sold 6,51,487 two-wheelers in 2013, 34% more than the previous year. Roy Kurian, vice-president for sales and marketing at Yamaha Motor India, attributed the rising sales to expanding dealership network and a strong product portfolio.
Riding on the success of its newly launched Centuro motorcycle, Mahindra 2wheelers posted 267% increase in its December sales.
While the two-wheeler makers are confident about the new year, makers of cars and commercial vehicles are cautious after continuous poor performance. While car sales have dropped for almost 14 months in a row, the commercial vehicle segment has seen a fall in sales for 24 months at a stretch, signalling a drop in economic activity in the country. The country’s largest commercial vehicle maker Tata Motors sold just 25,738 commercial vehicles —18,079 light commercial vehicles and 7,659 medium and heavy CVs — in the domestic market last month, 46% lower than December 2012. Ashok Leyland reported 14% fall in sales last month. Its bigger trucks and buses sales fell 26% to 3,890 units. Delhibased truck and bus maker Eicher Motors’ sales dropped 30% in December. Analysts tracking the automotive market said some recovery may happen in the second half of the current year after the general elections. “The market may have bottomed out and may see some positive change post the elections with the installation of a new government and the expected changes in the economic situation,” Abdul Majeed, leader for automotive practice at global consultancy PricewaterhouseCoopers, said. Honda Cars Sales up 30% in Dec NEW DELHI: Honda Cars India clocked 30% growth in its domestic sales in December 2013. The Japanese carmaker sold 5,493 cars last month against 4,242 cars a year earlier. Driven by the success of its first diesel car, the Amaze, Honda sold more than one-lakh cars in India for the first time in a calendar year. Jnaneswar Sen, senior vice-president for marketing and sales at Honda Cars India, said the company sold 1,07,661 vehicles in 2013. During April-December, its sales grew 66% to 85,656 cars. Merc Posts 32% Growth: Mercedes-Benz India on Thursday reported 31.62% increase in sales in 2013 at 9,003 units. The company’s Indian arm Mercedes-Benz India had posted total sales of 6,840 units in 2012. Mercedes-Benz India MD and CEO Eberhard Kern said: “We are very satisfied with our performance in 2013. We are happy that our New AClass, New E-Class & the SUV portfolio saw robust demand amid challenging market conditions.” Stating that consumers have “appreciated our initiatives”, he said: “We enter 2014 with a promise of delivering excellence.”
“The Indian auto industry is facing its most challenging times,” Sugato Sen, deputy director general at the Society of Indian Automobile Manufacturers (SIAM), said. “This is one of the longest spells of negative sales and all segments with the exception of the two-wheelers have declined in this fiscal.” SIAM expects a market turnaround only after a new government comes to power later this year. Hero MotoCorp, the world’s largest two-wheeler company by volumes, reported a 3% year-on-year fall in December sales, but its former partner Honda recorded a 36% jump in sales.
Honda Motorcycle & Scooter India was powered by a 54% rise in scooter sales at 1.71-lakh units. The Japanese firm’s motorcycle sales, too, grew 18% to 1.25-lakh units last month. Despite its slide in December, Hero posted its best-ever calendar year sales in 2013, selling 61.83-lakh bikes and scooters, up from 61.20-lakh two-wheelers in the previous year. Hero’s sales for the festive quarter of October to December rose 7% to 16.80-lakh units.
A 38% rise in scooter sales to 41,817 units helped TVS Motor Company stay positive in December, while Delhi-based Yamaha Motor India posted a whopping 58% jump in sales on the back of robust demand for its Ray and Ray Z scooters. The company sold 6,51,487 two-wheelers in 2013, 34% more than the previous year. Roy Kurian, vice-president for sales and marketing at Yamaha Motor India, attributed the rising sales to expanding dealership network and a strong product portfolio.
Riding on the success of its newly launched Centuro motorcycle, Mahindra 2wheelers posted 267% increase in its December sales.
While the two-wheeler makers are confident about the new year, makers of cars and commercial vehicles are cautious after continuous poor performance. While car sales have dropped for almost 14 months in a row, the commercial vehicle segment has seen a fall in sales for 24 months at a stretch, signalling a drop in economic activity in the country. The country’s largest commercial vehicle maker Tata Motors sold just 25,738 commercial vehicles —18,079 light commercial vehicles and 7,659 medium and heavy CVs — in the domestic market last month, 46% lower than December 2012. Ashok Leyland reported 14% fall in sales last month. Its bigger trucks and buses sales fell 26% to 3,890 units. Delhibased truck and bus maker Eicher Motors’ sales dropped 30% in December. Analysts tracking the automotive market said some recovery may happen in the second half of the current year after the general elections. “The market may have bottomed out and may see some positive change post the elections with the installation of a new government and the expected changes in the economic situation,” Abdul Majeed, leader for automotive practice at global consultancy PricewaterhouseCoopers, said. Honda Cars Sales up 30% in Dec NEW DELHI: Honda Cars India clocked 30% growth in its domestic sales in December 2013. The Japanese carmaker sold 5,493 cars last month against 4,242 cars a year earlier. Driven by the success of its first diesel car, the Amaze, Honda sold more than one-lakh cars in India for the first time in a calendar year. Jnaneswar Sen, senior vice-president for marketing and sales at Honda Cars India, said the company sold 1,07,661 vehicles in 2013. During April-December, its sales grew 66% to 85,656 cars. Merc Posts 32% Growth: Mercedes-Benz India on Thursday reported 31.62% increase in sales in 2013 at 9,003 units. The company’s Indian arm Mercedes-Benz India had posted total sales of 6,840 units in 2012. Mercedes-Benz India MD and CEO Eberhard Kern said: “We are very satisfied with our performance in 2013. We are happy that our New AClass, New E-Class & the SUV portfolio saw robust demand amid challenging market conditions.” Stating that consumers have “appreciated our initiatives”, he said: “We enter 2014 with a promise of delivering excellence.”
Source: The Economics Times
By: CHANCHAL PAL CHAUHAN
No comments:
Post a Comment