Auto industry bets on festive season to boost sales

Maruti-Suzuki is unlikey to forget July, 2012. It is the month that saw its Manesar unit burn with violence that kiiled one of its managers and brought production to a standstill.

However, the lock-out at the Manesar plant did not have any significant impact on Maruti-Suzuki's overall sales, thanks to inventory levels of close to 10,000 units. But there was some disappointment with India's largest carmaker continuing to miss the 1-lakh units per month sales target.

On a y-o-y basis, total sales jumped 9.2% to 82, 234 units versus 75,300 units on a year-on-year basis because the low base effect. The month-on-month sales though fell 15% due to the Manesar shutdown  to 82,234units as compared to 96, 597 units and could fall further if the lock-out continues in August as well. Exports though jumped 27.4% y-o-y to 11,210 units as compared to 8,796 units.

Tata Motors, on the other hand, reported results which were above expectations. The company declared a 15% y-o-y increase in sales to 73,491units versus 63,761units.

Mahindra & Mahindra, on the other hand, which had a good run in June saw it continue in July as well. The total auto y-o-y sales jumped 19% to 47,059 units as compared to 39,633 units. Passenger vehicles sales jumped an impressive 27% to 22,011units as compared to 17,312 units. While the commercial vehicles segment saw moderate growth to 9% at 14,688units as compared to 13,472 units,  its tractors sales continuing to witness pressure.

M&M' Arun Malhotra, says, “Sentiments are not all that good as one would expect them to be. But if you're able to penetrate your markets or reach out to newer customer segments and your portfolio is behaving well, you can actually buck the trend.”

As far as the two-wheeler market goes, TVS Motor continues to disappoint. Total sales was down 15% at 1.61 lakh units versus 1.89 lakh units. While exports saw a huge drop of 32% at 19,182 units versus 28,542 units on a y-o-y basis.

All expectations lie are now on the upcoming  festive season to boost the auto industry.