ICRA draws attention to India auto sales decline, can new launches boost Q3 and Q4
ICRA, the Indian independent and professional investment information and credit rating agency has shown concern for falling auto sales in the country. This fall in sales is noted both where passenger and commercial vehicles are concerned and spans the four wheeler, two wheeler and three wheeler segments since the start of this year.
New launches in this quarter and the next wil see some vehicles contribute towards sales voluem increase. Launches include the Nissan Terran, maruti Suzuki Wagonr Stingay, Volkswagen CrossPolo, Skoda Octavia, Toyota Camry hybrid, Tata nano diesel, Audi Q3 S, Rolls Royce Wraith, BMW 1 Series, Chevrolet Captiva next gen, Jaguar F-TYPE, Ford EcoSport, Limited edition Fiat Punto Sport, Hyundai Grand i10, Royal Enfield Cafe Racer, Mahindra centuro, Mahindra Vibe, Renault duster RxZ Plus, Yamaha FZ-S and Fazer special edition, Kawasaki Ninja ZX-10R and ZX-14R, Triumph bikes, Force One EX and LX, Bajaj Pulsar 375, Hindustan Motors Ambassador 1.5 litre diesel, new Mercedes Benz E63 AMG, Ashok Leyland Stile MPV, Maruti Suzuki Ertiga Green LXi CNG , Mitsubishi Pajero Sport Anniversary Edition, Tata Indigo taxi, Audi s6, Bajaj Discover 125T, Mercedes Benz B Class diesel, Honda Dream Neo 110cc, Piaggio Vespa VX 125cc, Nissan Micra facelift and Nissan Micra Acive, Audi RS5, Renault Scala RxE diesel, KTM 390 Duke, Mercedes-Benz E200, Honda Dream Yuga 110cc, Ford Classic limited edition, Maruti Suzuki Ertiga Green LXi CNG, Volvo V40 Cross Country, 2013 Linea T-Jet petrol, and Mercedes Benz A Class among others.
Passenger vehicle sales dipped 8.3% while utility vehicle sales were down 17.5% YoY. Similarly, commercial vehicle sales fell by 14.9% in July this year, marking the seventh consecutive month of declining sales. It was factors such as higher excise duty, rising fuel prices, rising interest rates and the economy itself in turmoil that caused these falling sales figures.
Two wheeler sales did marginally better with volume decline of 0.1% YoY while it was scooter sales that saw an increase by 9.8%. Three wheeler sales within the country fell by 6.1% though exports in this category increased by 17.6% YoY. Of all the auto majors in India, it was only Maruti Suzuki India Limited that recorded positive volume growth to the tune of 5.8% YoY in July 2013. Domestic sales volumes of Hyundai, Tata Motors, M&M and Toyota showed a decline while Honda and Ford showed more positive results, largely due to the recently launched Amaze and EcoSport. Tractor sales growth is also continuing on a more positive note primarily due to healthy monsoons across the country.