Auto makers in India have been benefitting from a buoyant economy, a rise in disposable incomes and several new vehicle launches. Near-normal monsoon rains, considered a key driver of rural income, have also helped sales.
As many as 12 new cars or refurbished variants of old models have been introduced since January this year. Most of the new launches have been in the small car segment, such as the Nissan Micra, Volkswagen Polo, Chevrolet’s Beat and Maruti’s new Alto K10 and WagonR.
Total sales at Hyundai Motor India Ltd. grew 2 per cent to 50,636 units in August, with local sales surging 17 per cent to 28,601 vehicles. But the auto maker’s exports fell, down 12 per cent to 22,035 vehicles. Hyundai said production, and subsequently sales, was constrained by lower supply of some auto parts.
“We are changing our production mix to meet an increased demand in the domestic market. We expect the demand in the domestic market to be even stronger in the coming festival season,” said Arvind Saxena, director of marketing and sales at Hyundai Motor India.
In its A2 segment, comprising Santro, i10 and i20, the company sold 45,804 units. In the A3 segment, comprising Accent and Verna, sales were at 4,806 units. The A5 segment comprising the Sonata Transform of HMIL witnessed sales of 26 units, while its SUV Tucson received no buyers during the month.
India’s festival season, which gets into full swing in October, is considered an auspicious time for making new purchases. Kaushal Maroo, research analyst with brokerage Religare Capital Markets Ltd., said the season will keep demand high until November.
“Demand is very strong. Most of the models are on a waiting period currently,” Mr. Maroo said. “Auto dealers will now start building their inventory for the festive season which would further boost sales.” Nissan Motor India Pvt. Ltd., which introduced its small car Micra in July, sold 1,249 autos in August compared to just 22 units sold a year earlier.