The logo of Maruti Suzuki India Limited is seen on a glass door at a showroom in New Delhi
Stocks of some automobile companies hit new peaks on Monday on strong July sales. A good monsoon, higher pay for government employees, the approaching festive season and fuel price cuts in June contributed to the industry’s performance.
Passenger vehicle sales within the country grew 17 per cent, year on year, in July, up from 2.7 per cent in June.
Market leader Maruti Suzuki posted its highest ever monthly sales growth in July at 13.9 per cent. The company’s performance in July follows a 10 per cent decline in sales in June over a disruption in supply of components and a maintenance shutdown.
Citing currency movement, Maruti Suzuki announced immediate price increases of Rs 1,500-5,000 on various models, excluding the Alto and the Celerio. Prices of bestsellers Brezza and Baleno have been raised by up to Rs 20,000 and Rs 10,000, respectively. Maruti Suzuki’s nearest competitor Hyundai, posted 13 per cent growth in July sales in the country.
Hyundai sold 41,201 vehicles in last month against 36,503 vehicles last July. “There is a marked improvement in consumer sentiment with the spread of the monsoon, low interest and inflation rates, and declining fuel prices. All are strong indicators for good festive demand. New salaries of government employees will act as a catalyst,” said Rakesh Srivastava, senior vice-president, sales and marketing, Hyundai.
Mahindra & Mahindra posted 20 per cent growth. “The good monsoon is reflected in our performance,” said Pravin Shah, president and chief executive (automotive) at M&M. The company also saw a 15 per cent jump in tractor sales.
Other companies that posted strong July sales were Renault, Nissan and Ford. Renault saw a multifold rise in sales to meet demand for the Kwid, its best performer. Nissan more than doubled sales on dispatches of its new car, Redi Go. Ford’s sales climbed 62 per cent on the back of the new Figo and Figo Aspire.
Honda’s sales declined about 24 per cent during the month. Volkswagen posted sales growth of about six per cent with the help of its new compact sedan Ameo. Experts said discounts and new models continued to drive demand.
“We expect growth to improve as dealers start stocking for the festival months,” said Amit Kaushik, country head (India) for UK-based automotive consulting firm Jato Dynamics.