“The cost increase due to addition of six airbags as a standard fitment across models has led to some challenges, and efforts are on to work with finance companies to address financing issues. Sales growth in the rural areas has slowed down to 2-3 per cent as compared to around 10 per cent last year” Partho Banerjee,executive director, Maruti Suzuki India
New Delhi: Amid softening demand in the domestic market, Maruti Suzuki India on Friday reported a marginal increase in vehicle dispatches to dealers in July while Tata Motors and Hyundai Motor India saw their sales dip.
Other major players Mahindra & Mahindra and Kia India reported a double-digit and single-digit year-on-year growth, respectively, in vehicle dispatches last month.
Maruti Suzuki India (MSI), the country’s largest carmaker, reported the dispatch of 1,37,776 passenger vehicles in July, registering a marginal increase from 1,37,463 units in the year-ago period.
The company said sales of mini segment cars, comprising Alto and S-Presso, declined to 6,822 units against 9,960 units in July 2024.
Sales of compact cars, including Baleno, Dzire, Ignis, and Swift, however increased to 65,667 units from 58,682 units a year ago.
Utility vehicles, consisting of Grand Vitara, Brezza, Ertiga and XL6, clocked sales of 52,773 units last month over 56,302 units in July last year, down 6 per cent.
In a virtual press meet, MSI Senior Executive Director (Service) Partho Banerjee noted the company is recalibrating dispatches to manage sales network stock levels.
He also stated that the cost increase due to addition of six airbags as a standard fitment across models has led to some challenges, and efforts are on to work with finance companies to address financing issues.
Banerjee said that sales growth in the rural areas has slowed down to 2-3 per cent as compared to around 10 per cent last year.
He noted that urban areas were facing challenges due to factors like slowdown in the IT sector and other uncertainties.
On sales outlook, Banerjee noted that the upcoming festival season is expected to be positive with early indicators showing booking growth in Kerala.
“The overall market environment is seen as favourable with good monsoon conditions and expectations of increase in MSP,” he added.
Hyundai Motor India said its dispatches in the domestic market declined 10 per cent year-on-year to 43,973 units in July.
“While the overall auto industry has seen some softness in recent months, we remain optimistic with the onset of the festive season and are fully geared up with robust supply and exciting product offerings,” the company’s COO Tarun Garg stated.
Mahindra & Mahindra said it sold 49,871 utility vehicles in the domestic market, up 20 per cent as compared to 41,623 units in July last year.
“Our SUV growth has been supported by the recent launch of XUV 3XO ‘REVX’ Series & the commencement of deliveries for Pack two variants of the BE 6 and XEV 9E models,” Mahindra & Mahindra (M&M) CEO Automotive Division Nalinikanth Gollagunta said.
Tata Motors said its total passenger vehicle dispatches in the domestic market declined 12 per cent year-on-year to 39,521 units in July.
Kia India reported an 8 per cent year-on-year increase in total sales to 22,135 units in July. “Our steady sales performance reflects the trust Indian customers continue to place in Kia. This consistency is driven by our commitment to delivering high-quality and feature-rich vehicles that meet evolving customer needs,” Kia India Chief Sales Officer Joonso Cho stated.
Toyota Kirloskar Motor said its sales increased 3 per cent year-on-year to 32,575 units in July.
The Japanese automaker sold 29,159 units in the domestic market.
“Overall, market acceptance has been consistent for us, which goes to underpin our unwavering commitment to a customer-centric approach,” TKM Vice President, Sales-Service-Used Car Business, Varinder Wadhwa said.
In the two-wheeler space, Bajaj Auto said its total domestic sales declined 13 per cent to 1,83,143 units in July compared to 210,997 units sold in the corresponding month last year.
Royal Enfield reported a 25 per cent year-on-year increase in domestic sales at 76,254 units last month as against 61,208 units in the year-ago period.