Tata Motors reported a 4.39 per cent decline in total sales in May at 38,361 units compared to 40,123 units in the same month last year, reported PTI.
Domestic sales of Tata Motors’ commercial and passenger vehicles declined by 3.45 per cent to 34,461 units last month as compared to 35,695 units in May 2016, Tata Motors said in a statement.
Sales of passenger vehicles in the domestic market grew 27 per cent to 10,855 units last month. This was due to continued strong demand for the Tata Tiago, the Tata Tigor and the Tata Hexa.
In the commercial vehicles segment, the company’s domestic sales were down 13 per cent at 23,606 units last month, the auto major said.
The company said market continues to remain weak and the demand has still not picked up. There are early signs of retails of BS4 vehicles but it has still been slow.
Overall sales of Tata Motors’ MHCV trucks were at 6,522 units in May 2017, a decline of 40 per cent over May 2016 base.
“The sale in MHCV was affected primarily due to severe global supply constraints of Fuel Injection Pumps for BS4 engines,” the company said.
ILCV trucks sales were 12 per cent down at 2,368 units last month compared to 2,697 units sold last year in May, impacted by late supplies of fuel injector systems.
“These issues are expected to be resolved on short notice with full capacity available as of July 2017,” Tata Motors said.
Sale of small cargo vehicles (SCV) were up 10 per cent at 10,572 units as against 9,645 units in May 2016.
“On the SCV and Pick-up segments, there is a strong sales recovery with full availability of BS4 products and good market response to new variants like Xenon Yodha and Ace Mega,” the company said.
The company’s sales from exports declined 12 per cent at 3,900 units last month compared to 4,428 vehicles in May 2016.
The company said exports have been impacted in April and May due to retail drop of SCV in Sri Lanka after steep increase in import tariffs in late 2016, as well as fall in Nepal demand in the build-up to their elections.
Meanwhile, shares of the company closed at Rs 2,817.65 apiece, down 0.25 per cent, from previous close on BSE.
The company had sold 20,420 units in the same month of last year, Ford India said in a statement.
Domestic sales, however, declined by 24.98 per cent to 7,508 units last month as against 10,008 units in the same period a year ago, it said.
Exports during the month surged by 39.59 per cent to 14,535 units as compared with 10,412 units in October 2015, it added.
“The automotive industry is seeing the impact of a good monsoon, 7th pay commission and other macro-economic indicators like inflation,” said Anurag Mehrotra, executive director, Marketing, Sales & Service, Ford India.
“As we look for the industry momentum to sustain, Ford remains committed to its strategy of product led innovation, a differentiated customer experience, and breaking the myth on our cost of ownership,” he said.
The upcoming festive season, beginning October 1 is likely to register record-breaking sales, revenues, and highest ever purchase rate per minute for e-commerce giants as most people deferred their purchasing plans during the fortnight of pitru paksha and are now ready to loosen purse strings, revealed an ASSOCHAM survey-cum-analysis.
The ASSOCHAM had carried out the survey during the course of past fortnight across 10 prominent cities of – Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Indore, Jaipur, Kolkata, Lucknow and Mumbai to ascertain their shopping plans for the upcoming festive season.
“About 60 per cent of the total respondents said they are ready with their shopping lists and would prefer online shopping over standing long hours in store aisles, while most of the remaining opted for shopping at physical brick and mortar outlets,” highlighted the survey conducted by the ASSOCHAM Social Development Foundation.
Majority of respondents also said they are planning to splurge on lucrative deals and discounts offered by e-tailers on everything from apparels, appliances, cosmetics, jewellery, perfumes, shoes, electronic items like – mobiles, laptop, television, portable media players and others.
Ease of shopping, various delivery options, diverse payment modes, better offers and other such factors are key reasons highlighted by many respondents to shop online in the festive season starting with ‘Navratri’ in October followed by a string of festivals including Diwali and the festivities do not stop until new year.
“This is expected to be the busiest festive season for e-commerce companies as Indian consumers are likely to spend up to Rs 25,000 crore and more as against over Rs 20,000 crore spent in festive season last year thereby registering about 25 per cent growth,” said D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber’s survey-cum-analysis.
“Most of the e-tailers have already jumped on the bandwagon for running promotional offers like deep discounts, exclusive merchandise, cash-back schemes, and other such deals to cash in on festive season frenzy and have set off marketing campaigns to rake in maximum profits,” said Rawat.
As part of its analysis, ASSOCHAM had also sought opinions of various experts in the field of advanced research, analytics and digital intelligence services specialising in communications insights and community trends.
Many of these suggested various things like – the e-tailers must learn from the past and gear up to counter various challenges related to logistics, influx of visitors and avoid losing customers due to technical issues by taking all precautionary measures beforehand like investing in a larger server or cloud hosting service.
Besides easier website navigation together with higher levels of service and festive product categories and a responsive website will entice customers and is a great way to differentiate from competitors that may launch seasonal marketing campaigns and offer similar discounts.
However, car sales were down 5.18 per cent to 1,54,237 units as against 1,62,655 units in June last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Motorcycle sales last month increased 7.52 per cent to 9,43,680 units as against 8,77,690 units a year earlier.
Total two-wheeler sales in June grew 12.26 per cent to 14,68,035 units as compared with 13,07,704 units in the year- ago month.
Sales of commercial vehicles were up 5.63 per cent to 56,032 units in June, SIAM said.
Vehicle sales across categories registered a growth of 10.7 per cent to 17,95,894 units from 16,22,254 units in June 2015, it added.
The cumulative sales figure for the period January-June stands at 61,895 as against 23,346 in the corresponding period last year, thereby registering a growth of 165 per cent, the company said in a statement.
Renault India said it has embarked on “an aggressive network expansion plan” to increase its sales point to 270 by the end of 2016 from the current 210.
In June 2015, the company had posted total sales of 10,429 units, Ashok Leyland Ltd said in a filing to the Bombay Stock Exchange (BSE) on Friday.
Sales of medium and heavy commercial vehicles (M&HCV) climbed by 8 per cent at 8,685 units in June 2016 from 8,016 units in the same month a year ago.
Meanwhile, sales of light commercial vehicles (LCV) remained mostly flat at 2,423 units in June 2016 from 2,413 units in the same month a year ago.
Total sales climbed by 11 per cent to 31,165 units in April-June 2016 from 28,154 units in the same period a year ago.
Further, sales of medium and heavy commercial vehicles (M&HCV) climbed by 12 per cent at 24,027 units in April-June 2016 from 21,453 units in the same period a year ago.
Meanwhile, sales of light commercial vehicles (LCV) climbed by 7 per cent at 7,138 units in April-June 2016 from 6,701 units in the same period a year ago.
Traders cheered the mostly upbeat June sales report of the company as shares of Ashok Leyland jumped by 1.22 per cent at Rs 99.80 apiece on the Bombay Stock Exchange (BSE) at 14:16 PM IST on Friday.
The industry has also asked for negotiating free trade agreements (FTAs) with more Latin American countries like Chile, Peru and Colombia to boost exports from the country.
“We have approached Ministry of Commerce for rupee trade with African countries as we are facing a challenge in dollar trade in these big export markets like Algeria and Nigeria,” Society of Indian Automobile Manufacturers (SIAM), Deputy Director General Sugato Sen told reporters.
These countries cannot make payments in dollars and that is impacting the trade with these nations, he added.
“So we have asked the Commerce Ministry to negotiate rupee trade with these countries. It is a long term bilateral thing and these countries also need to study it,” Sen said.
Of the total automobile exports of around USD 8.86 billion in 2015-16, Africa alone accounted for 30-35 per cent of the total overseas shipments in value terms.
With issues like falling prices of crude and commodities, African countries are facing issues with dollar payments.
Countries like Algeria, Nigeria and Morocco are among the major export markets for domestic automobile industry.
SIAM has also approached the Commerce Ministry for FTA’s with more Latin American nations to safeguard exports to these markets.
“These countries are inking FTAs with various competitors like South Korea, Japan and the US and as a result due to the enhanced competition our position is getting eroded. So we are seeking FTAs with more countries in the continent,” Sen said.
In the past few years there has been a clear shift in automobile exports from developed regions like EU to developing markets like Africa, Latin America and ASEAN region, he added.
Automobile exports from India to Latin America stood at USD 91 million in 2004-5. It grew to USD 1,044 million in 2013-14.
ASEAN, Africa and Latin America are the fastest growing markets for automobile exports from India since 2004-05.
However, the country’s exports to SAARC nations have been declining which is a cause of worry, Sen said.
India Yamaha Motor said in a statement, “The company continues to maintain an upward trend in sales on the back of its superb product line-up with the addition of the newly launched commuter bike Saluto RX and scooter Cygnus Ray-ZR.”
It added, “Yamaha’s increasing focus on expanding in Tier II and III cities, thus reaching out to larger groups of target population, has also been instrumental in boosting sales.”
The company had sold 35,354 units in the same month of last year, it said in a fling to the Bombay Stocks Exchange.
In May, domestic sales surged 36 per cent to 47,232 units as against 34,615 units in the same month last year.
Exports stood at 1,372 units, up 86per cent compared with 739 units in the corresponding month last year.