There are some positive trend has been noticed in past few months. Especially oil price has come down more than couple of time. Also some positive outlook of GDP growth which effect on almost every sectors. There are no major changes in Indian credit policy. Some price rise expected in coming months due to cost of sales has increased. To increase sale in December which is normally slow for Industry, started to give gifts and discount in different formats to attract customers.
The overall sales of automobiles in India stood at 1,603,292 units in November 2014 and has recorded a growth of 5% as against November 2013 where 1,526,438 vehicle were sold. Production has registered 12% growth and Export registered 32% impressive growth with 334,410 vehicle in November 2014.
Market was expecting some positive growth in every segment. In November 2014, Two Wheeler, Commercial Vehicle and Three wheeler sales in India is positive. Two Wheeler with 5%, Passenger vehicle which includes cars also with 5%, Commercial Vehicle (Truck and Bus) which is one of the parameter of growth of overall country economy registered 9% growth and Three wheeler which is relatively based on local market factors registered 3% growth.
The Segment share of all segment is almost flat and there are no major shift or changes happened in November 2014. In Commercial Vehicle Volvo has recently launch new Truck range in premium segment.
However festive season was going on in last two months in India but production of Automobile segment has increased from 1,773,678 to 1,9994,248 with 12% growth. Three wheeler segment has registered 42% growth due to heavy demand for export. Other segment like Two Wheeler, Commercial vehicle and Passenger cars has registered growth in double digit. Except Two wheeler, segment share of Passenger Vehicle, Commercial vehicle and Three wheeler has increased. Some primary sales of festive season could be one of the reason. There are some excess billing from manufactures to dealers in Two Wheeler.
In export, Two wheeler is heading in all automotive segment in India. Two Wheeler export stood at 228,510 with 29% growth compare to November 2013. Passenger vehicle, Commercial Vehicle, Three wheeler export stood at 56,384, 7,179 and 334,410 vehicle.
Segment share of two wheeler has increases from 11.6% to 14.3% almost 3% jumped.
– Police & law enforcement agencies across pan India is going to buy 1,542 Tata Motors SUMO GOLD which is define under mainly in utility vehicles segment from various. Tata Sumo is rough and tough vehicle for such application and its suits for such application.
– General Motors is putting extra efforts to make its presenece more effective in Indian Market.
– Maruti Suzuki has called back 3,796 CIAZ car after detecting some issues in clutch plate.
– Government may soon introduce new guideline on car safety.
– New Delhi high court has banned more than 15 Years old vehicle. Such steps has taken some years ago in Europe which increased car sales. In Europe, vehicle owners has received some fixed amount against its old vehicle.
– Excise duty decision would also play some important role in up coming sales.
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Source: SIAM, ACG