After GST rollout, automakers report robust numbers in July

Eloi Lecerf
Agosto 2, 2017

The first month of the goods and services tax (GST) was a mixed bag for automobile manufacturers with some seeing good jump and a few others a moderate increase in July sales.

Passenger vehicle major Maruti Suzuki India reported a rise of 20.6 percent in its monthly sales for July 2017, selling 165,346 units in July from 137,116 units sold during the corresponding month of 2016.

Homegrown auto companies Tata Motors and Mahindra & Mahindra too, clocked a healthy increase in sales. Its domestic sales increased 22.4% during the month to 1,54,001 units. The company's growth was driven by compact segment - comprising Swift, Estilo, Dzire, Baleno and Ignis - which saw a 25.3 per cent increase to 63,116 units in July as against 50,362 units in the same month past year. The mini segment, comprising the Alto and WagonR, also continued to grow in double digits at 20.7 per cent to 42,310 units. Its commercial vehicles sales in the domestic market rose 15% to 27,842 units.

Mayank Pareek, president, passenger vehicles business unit, said there was an improved customer buying sentiment, post-GST.

Tata Motors' commercial and passenger vehicle sales saw an increase of 7% compared to July 2016 figures.

A good monsoon, successful GST rollout and a good run-up to the festive season gives the company confidence of achieving robust growth in second quarter, M&M President Automotive Sector Rajan Wadhera said.

The country's second largest carmaker, Hyundai Motor India Ltd (HMIL), however, reported a 4.38 per cent increase in its domestic sales at 43,007 units in July.

Ford India said it sold 8,418 vehicles in July 2017 as against 7,076 units in the year-earlier month "despite the administrative challenges associated with the introduction of GST in July..."

Yoichiro Ueno, president and CEO, HCIL, said good growth with strong sales numbers was seen across all the models.

GM Canada sales up 22 percent in July, Fiat Chrysler slips
BMO Capital Markets reiterated a "market perform" rating on shares of General Motors in a research note on Wednesday, May 3rd. Jfs Wealth Advsr Limited Liability Corporation holds 0.04% of its portfolio in Ford Motor Company (NYSE:F) for 10,964 shares.

Likewise, Ford India also reported a rise of 18.96 per cent in its domestic sales at 8,418 units last month as against 7,076 units in July previous year.

"A good monsoon, conducive financing rates and consumer confidence during festival season will provide a good impetus for the industry, " he said.

The company's domestic sales were higher by 13 percent to 39,762 vehicles during last month from 35,305 units sold during July 2016. Ciaz sales climbed 23.5% to 6,377 units.

Passenger vehicles sales at Mahindra and Mahindra Ltd rose 21% to 20,962 units.

However, exports inched-up by 0.1 percent with only 11,345 units shipped out during July 2017, down from 11,338 units sold overseas in the like period of 2016.

Likewise, Eicher Motor's Royal Enfield, reported a 20.75 per cent increase in total sales at 64,459 units as compared to 53,378 units in the same month a year ago.

Similarly, Honda Motorcycle and Scooter India (HMSI) also posted a 19.96 per cent increase in total sales at 5,44,508 units last month.

Chennai-based TVS Motor Company saw its total sales in July grow by 9.34 per cent at 2,71,171 units as against 2,48,002 units in the same month past year.

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