Car makers end tough year with improved sales numbers

After tackling slow sales across most of FY 2013-14, things picked up for some carmakers in the latter months.

Published on Apr 02, 2014 11:27:00 PM

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Maruti Celerio.

Now that a new financial year is upon us, car sales numbers from the previous twelve months are coming in. The results are somewhat of a mixed bag, with some manufacturers enjoying resounding success and others registering sales figures lower than in the year gone past. It’s no secret that 2013-14 was a difficult year in general for the automotive industry, but there are certain factors that have allowed some manufacturers to bounce back towards the end, more often than not, an attractive new model. The excise duty cuts passed in the Interim Budget in February 2014 also gave the industry a bit of a boost, with prices dropped by pretty much every brand. Let’s take a look at some of the carmakers’ sales fortunes over March 2014 and the 12 months prior.

Maruti Suzuki

The country’s largest carmaker by a country mile, Maruti’s cumulative sales for 2013-14 amounted to a whopping 10,53,689 units. However, that’s only a 0.25 percent increase compared to the 2012-13 financial year. In fact, the company saw a 5.21 percent decline in sales in March this year (1,02,269 units) compared to the same month in 2013 (1,07,890 units). This is despite the launch of the immensely well received Celerio hatchback, which has racked up over 20,000 bookings, including the affordable AMT automatic variants, since its launch in February. A break-up of the sales reveals that Marutis in all other segments have seen a small decline in sales this March 2014 compared to March 2013.

Hyundai

The Korean carmaker, meanwhile, sold 3.38 percent more cars in March 2014 (35,003 units) compared to the same period last year (33,858 units). Launched in 2013, the Hyundai Grand i10 – the company’s fifth hatchback – has found a lot of takers, thanks to its blend of features, styling and frugal diesel engine. The company didn’t reveal its sales figures for the entire fiscal year, but Rakesh Srivastava, Hyundai’s senior VP sales and marketing, says the outlook for the coming year is positive. “After the reduction of excise duty and with the strong performance in the compact car segment, Hyundai has registered a growth of 3.4 percent over March 2013, which indicates a build-up of positive momentum,” he said.

Mahindra

The SUV specialist and third largest carmaker in India hasn’t done as well in FY 2013-14 as it did in FY 2012-13. In the last 12 months, it sold 2,29,155 units compared to 2,79,270 units the year before that, a drop of 18 percent. Even when you compare March 2014 (23,433 units) to March 2013 (25,847 units), you’ll see that there’s been a 9.34 percent decline in sales. Mahindra’s only new launch in 2013 (not counting the e2o, which is a niche product and hasn’t done huge sales numbers either), the sub-four-metre Verito Vibe, hasn’t enjoyed the same success as other compact sedans in India. Like Hyundai, the company has stated that although the surge of growth hasn’t kicked in yet, the excise duty reduction will have a big role to play in the coming months.

Honda

In 2013, Honda added a diesel engine to its profile, and it caused a turnaround in the company’s fortunes. The Honda Amaze, in which it was introduced, found a lot of takers, but its second recipient, the new City is proving an even bigger success story. In January, the month of its launch, it sold more than 7,000 units, becoming one of the top ten best-sellers. It’s stayed on that list since, selling a whopping 9,518 units in March 2014. The result is that Honda’s March sales have seen an 83.45 percent rise in 2014 (18,426 units) compared to 2013 (10,044 units). Over the financial year too, the jump has been a similarly significant 83 percent at 1,34,339 units in the 12 months gone by, from 73,438 units in the year before it. With the Jazz and Mobilio launching this year with the same diesel motor under their hoods, that percentage could just go up by FY 2014-15.

Toyota

Comparatively, fellow Japanese carmaker Toyota didn’t have as good a month in March 2014, selling just 8,206 units compared to 19,452 units in March 2013; that’s a 57.81 percent drop. The company didn’t reveal its sales figures for the entire financial year. This dramatic drop in sales likely had a lot to do with the lockout enforced that very month at the company’s Bidadi, Karnataka plant, which otherwise produces 700-800 cars a day. N Raja, senior VP sales and marketing for Toyota said, “We started limited operations from March 18, 2014, with the help of our non-unionised team members, a majority of whom are supervisors.” Additionally, aside from a few facelifts and product updates, the company didn’t have any all-new launches in the past financial year to help draw buyers to its showrooms. However, with the lockout now averted and the new Corolla Altis just around the corner, things could look up for Toyota.

Tata Motors

Tata had a bit of a rocky start to this financial year, but things obviously picked up by the end of it. The company recorded a 37.66 percent drop in sales over the last 12 months, managing to sell 1,38,455 units in FY 2013-14 compared to 2,22,112 units in FY 2012-13. In March 2014, Tata Motors recorded a slight increase of 2.37 percent to 12,640 units as against 12,347 units sold last March.  

The reasons behind this aren’t clear at the moment, but the constant improvements to the Tata model range, particularly the Nano, through its Horizonext programme seem to have worked. Or perhaps it was the company’s exciting display at the 2014 Auto Expo in February that won the company back some customers.

Nissan

Overall, Nissan India only saw a 3.36 percent rise in sales from the last financial year to this one, from 36,975 units to 38,217 units. However, given the developments for the company in the latter months of the financial year, the difference in sales between March this year and last is huge. It launched the Sunny automatic in April, the Micra facelift and affordable Nissan Micra Active in July, and finally, the Terrano compact SUV in October. The company also took its sales, distribution and after-sales into its own hands, ditching former partner Hover. Finally, it launched the Datsun brand and began sales in March with the Go, which managed to shift 2,072 units on its own. Counting these as part of Nissan Motor India, the company registered a 230 percent rise in sales this March compared to last year, going from 2,125 units to 7,019 units!

Ford

The Blue Oval didn’t reveal its sales performance for the last 12 months, but it declared a 21 percent rise in sales in March 2014 (6,356 units) compared to March 2013 (5,271 units). With its other models like the Fiesta, Endeavour, Classic and Figo having fallen out of the limelight in recent times, there’s no doubt about which model was responsible for the growth. The EcoSport, which was launched in June 2013, was such a hit that Ford couldn’t keep up, prompting temporarily closed bookings, huge waiting periods and even subsequent price hikes. Still, Ford also said the excise cuts had a part to play, and that better things could be in store. “Cautious is how we should define the first quarter of 2014,” said Vinay Piparsania, Ford executive director of marketing, sales and service. “As India gets set to vote, we look forward to such industry-friendly initiatives being sustained to support the important automotive sector.” 

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