42 | AutoPartsAsia | AUGUST 2017ANALYSIS
O
n the onset of July, 2017
India rose to the Goods
and Service Tax (GST)
regime which left a mixed
impression on the people of the
country. For the automotive industry,
June, the month before GST was
to be implemented, was a period of
cautious actions. Domestic sales of
passenger vehicles fell steeply owing
to the confusion over tax implication
and unsold inventory.
However, for the first quarter of the
current fiscal (April –June), passenger
vehicle sales grew four percent to
727,658 units compared to 697,154
units in the same period a year ago.
According to the latest numbers
released by the Society of Indian
Automobile Manufacturers (SIAM),
198,399 units of passenger
vehicles were dispatched in June
2017 compared to 223,454 units
dispatched in the same month a year
ago, a decline of 11.21 percent. Sales
by most of the vehicle manufacturers
declined in June.
The dispatches were low despite
the discounts offered by the vehicle
manufacturers. In the coming months
the passenger vehicle segment isexpected to do well owing to price
cuts after GST. Pay out of the Seventh
Pay Commission also will help. “The
PV market is expected to continue
its growth of 7-9 percent during
FY 2018,” Vishnu Mathur, Director
General of SIAM, said.
India’s largest PV maker by volume
Maruti Suzuki India registered a
marginal single-digit growth in June- The company slipped to an
early single-digit of 1.2 percent in
June 2017 at 93,263 units against
92,133 units during same month last
year.
In June 2017, Hyundai Motor India
(HMIL) domestic sales fell 5.6 percent
to 37,562 units compared to 39,807
units in June 2016. “In a challenging
market with speculations on GST
structure, Hyundai registered its
highest ever half year domestic
sales at 2,53,428 units with a growth
of 4.1percent on account of strong
acceptance of super performer
brands Grand i10, Elite i20 and Creta
in pre-GST business environment.
We expect a positive demand pull
after the implementation of GST in
the coming months as industry will
witness heightened level of customer
interest in a seamless unified single
market,” Rakesh Srivastava, Director,
Sales and Marketing, HMIL, said.Tata Motors’ domestic passenger
vehicle sales declined 10 per cent to
11,176 units in June 2017 compared
to 12,509 units sold in June 2016.
“Mixed consumer sentiment in June
2017 towards the implications of GST
has impacted the passenger vehicle
business while the commercial
vehicles business grew on month-on-
month basis, due to BS-IV production
ramp-up,” the company sources said.Honda Cars India reported that
its domestic sales grew 12.2 per
cent in June, 2017 to 12,804 units
from 11,407 units sold in the
corresponding month last year. “HCIL
conducted a price protection in June
to those customers who purchased
cars before GST roll out to counter
the sales challenge during pre-
GST period. It helped us maintain
good sales numbers. We foresee
that GST, good monsoon forecast
and upcoming festive season will
further improve the buyer sentiment,”
Yoichiro Ueno, President and CEO,
Honda Cars India, said.
Ford India reported 35 percent fall
in domestic wholesale in June 2017
to 6,149 vehicles from 9,469
units in June 2016. “Leading
up to the biggest tax reform,
June 2107 saw moderate
wholesale as the industry
looked to protect itself from
the possible impact. However,
GST is a step in the right
direction, and expected to
strengthen economic growth,”
Anurag Mehrotra, Managing
Director, Ford India, said.
Indian Utility Vehicle
manufacturer Mahindra &
Mahindra witnessed a drop of
eight percent in total sales to
35,716 vehicles, from 39,009
vehicles during June 2016.
Toyota Kirloskar Motor (TKM),
awaiting clarity on GST, did
not dispatch large number ofGST Din Dims June 2017
Vehicle Sales In India
APA Bureau
42 | AutoPartsAsia | AUGUST 2017