Back-to-Back Monthly Gains Hearten Indian Auto Makers

MUMBAI – India’s auto makers report a surprising 11.8% year-over-year increase in light-vehicle sales to 246,806 in July, following an 11.9% improvement in June, according to WardsAuto data.

Year-to-date growth is even better at 1.98 million deliveries, 13.7% ahead of like-2011.

The results reflect manufacturers’ ability to respond to consumer tastes and demands by changing their product mix from cars to light trucks and from gasoline engines to diesels on short notice.

As a result, sales are exceeding forecasts by both the government and the Indian auto makers’ association. They had lowered 2012 projections for car deliveries to 9% from 11% and for light trucks to 3% from 5%.

Compact cars and sedans are giving way to new-generation light trucks such as SUVs and compact multipurpose vehicles offering the features and comforts of cars, but with far more space and equally attractive designs and interiors. The share of light-truck sales in India rose from 30% in 2010 to 41.5% in July, WardsAuto data shows.

According to industry spokesmen, diesel vehicles’ market share jumped from 27% in 2011 to 41% in July. Diesel fuel currently costs about half as much as gasoline.

June and July sales growth has been achieved despite fiscal and political uncertainties, pessimism about economic growth, the monsoon season and even the massive power outages earlier this month. But the sales trends are uneven.

Combined July light-vehicle sales of Hyundai and Maruti Suzuki increased 7.0% year-over-year to 98,609, WardsAuto data shows, despite the small-car manufacturers’ large portfolio of fuel, design and performance options. Deliveries by Tata and Mahindra & Mahindra, which focus on utility vehicles and diesel engines, jumped  31% and 19%, respectively.

Honda Siel sales declined 7% in July from year-ago, while Toyota Kirloskar volumes rose 7%. Nissan and Renault India deliveries spiked a combined 191% last month to 5,257 units, but Volkswagen India and Skoda sales dropped 18% to 12,759.

U.S.-based auto makers Ford India and General Motors India saw July sales tumble 20.9% from like-2011 to 13,493 units. After months of rapid growth, super-luxury manufacturers Audi, BMW and Mercedes-Benz together delivered 1,667 cars and light trucks, off 9% compared with a year ago.

All the auto makers are looking forward to improved results during the 4-month-long festival season now under way.