Jan PV sales slide for 3rd straight month as manufacturers reduce inventory

Domestic car sales were also down for the third consecutive month, declining 2.65 per cent to 179,389 units.

Article Source BS : Domestic passenger vehicle (PV) sales declined for the third month in a row in January, dropping 1.87 per cent, as manufacturers continued to reduce inventory at dealers following a tepid festive season sales, according to SIAM.

As per data released by the Society of Indian Automobile Manufacturers (SIAM) Friday, PV sales in January stood at 2,80,125 units last month as against 2,85,467 units in the same month last year.

Domestic car sales were also down for the third consecutive month, declining 2.65 per cent to 179,389 units as compared to 1,84,264 units in January 2018.

"Stock correction by manufacturers continued in January to cut inventory that were piled up during the festive period, which saw sluggish sales," SIAM Deputy Director General Sugato Sen told PTI.

He, however, said retail sale was better than wholesale in January, and the industry expects demand to grow in the remaining two months of the fiscal.

During the month, market leader Maruti Suzuki India (MSI) posted a marginal growth of 0.18 per cent in its PV sales at 1,39,440 units. Rival Hyundai Motor India Ltd (HMIL) also posted 0.65 growth at 45,803 units.

Similarly, homegrown utility vehicles major Mahindra & Mahindra also saw 0.88 per cent rise in its PV sales at 23,864 units last month.

In passenger cars segment, MSI's sales stood at 1,01,865 units, down 4.12 per cent. HMIL's car sales was also down 1.58 per cent at 35,439 units last month. Honda Cars India, however, saw its car sales grow 51.67 per cent to 14,383 units.

In the two-wheeler segment, SIAM said total sales in January were down 5.18 per cent to 15,97,572 units compared to 16,84,761 units in the year-ago month.

Motorcycle sales last month declined 2.55 per cent to 10,27,810 units as against 10,54,757 units in the same month a year ago.

Market leader Hero MotoCorp's bike sales last month was down 4.95 per cent at 5,16,451 units. Rival Bajaj Auto, however, posted growth of 24.67 per cent at 2,03,358 units last month. Honda Motorcycle and Scooter India's bike sales stood at 1,28,525 units, down 24.19 per cent.

Total scooter sales last month declined by 10.21 per cent at 4,97,169 units as against 5,53,695 units in January last year, SIAM said.

Market leader HMSI's scooter sales were at 2,72,170 units, down 14.77 per cent. Chennai-based TVS Motor Co also saw its scooter sales dip by 0.41 per cent at 83,794 units.

Suzuki Motorycle India, however, witnessed a 60.28 per cent jump in it scooter sales at 61,348 units last month.

SIAM said sales of commercial vehicles were up 2.21 per cent to 87,591 units in January.

Hero MotoCorp forays into 125-cc scooter segment with Destiny 125

Destini 125 comes with two variants priced at Rs 54,650 and Rs 57,500, respectively (ex-showroom).

The country's largest two wheeler maker Hero MotoCorp Monday forayed into the 125-cc scooter segment with the launch of all new product -- Destini 125.

The new model comes with two variants priced at Rs 54,650 and Rs 57,500, respectively (ex-showroom).

It will compete with the likes of Suzuki Access 125, Honda Activa and Grazia, and TVS NTorq.

"The scooter market is witnessing a shift towards products with higher engine capacity. The 125-cc segment in particular has been expanding at a rapid pace witnessing a growth of over 75 per cent year to date this fiscal," Hero MotoCorp Head of Global Product Planning Malo Le Masson told reporters.

The 125 cc segment is therefore is a focus area for the company, he added.

"We are strategically following a multi-brand approach in this space. In keeping with this strategy we have debuted today in this category with the Destini 125 and will soon introduce another scooter towards the end of the year," Masson said.

The 125-cc scooter market is estimated to be around 100,000 units per month.

Hero MotoCorp Chief Technology Officer Markus Braunsperger said the new model has been developed completely in-house and comes with features like idle stop-start feature, a first in scooters.

"We have a strong pipeline of new products in both scooter and premium motorcycle segments which we will launch in the coming months," he added.

Hero MotoCorp will start retailing Destini from Delhi/NCR from Tuesday, while sales in other parts of the country would begin in the next 3-4 weeks.

"We are confident that the Destini 125 will be a strong contender for us in growing our presence in this category," Hero MotoCorp Head of Sales, Customer Care and Parts Business Sanjay Bhan said.

When asked about sales in the ongoing festive season, he added: "The first few days have not been so phenomenal. It has rather been tepid due to various ongoing turbulences. But, we expect sales to firm up going ahead".

Business Standard