Maruti, despite getting some major challenges from the Hyundai, remained the leader in the top 10 car sales figures, with all the top 4 cars being Maruti and a total of 5 cars in the top 10 list. Hyundai scored a decent second with 4 out of 10 cars being the Hyundais and Honda also managed to feature on the list with only one entrant, the City.
Interestingly enough, all the top three Maruti models posted lower sales as compared to the August sales. Only Maruti Wagon R, Hyundai Elite i20 and the Honda City were able to post growth, with the City being the new entrant in the list. The other Honda, Amaze, though, suffered huge losses, with the volume falling to less than a half from the previous month, and eventually evicting out of the list.
Sanghi, top office bearer at the Federation of Automobile Dealers Association and owner of Mahindra & Mahindra dealerships said "The first week of October was one of the worst periods due to a long weekend. Banks were closed almost for a week, transactions were held up and customers postponed buying." Disappointed by the results, he added, "It's not been as exciting festive season in terms of sales as we expected."
In the overall analysis, the sales had fallen in September for the first time since May. Although, the trends at the beginning of the festive season generally bring good news for the automotive industry, this season has clearly indicated subdued demand in sales. According to Mohit Arora, executive director of marketing information company JD Power Asia Pacific, the industry estimates had far exceeded ground realities. "We hope that Diwali will prove to be the turning point."
Talking about Honda, the company said it has cut down the production of the Amaze to increase the production of the City. "We have 15,000 units a month (overall) production capacity and we accordingly adjust it. Since we halted production of the City, we had longer waiting period and that's why we increased production of the City and decreased production of Amaze," said Jnaneswar Sen, senior vice president of marketing and sales at Honda Cars India Ltd. "From November, we will increase the capacity to 20,000. Then we hope we will be able to manage much better."
"We have already started preparations for adding second shift operations in Tapukara plant which will begin from next month and help us speed up the deliveries. We were able to maximise production of Amaze in August 2014 as production capacity was available with us due to shifting of production location of Honda City in that month," Mr. Sen added.
The trade pundits are hopeful for the October month to reverse the trend and bring back the cheers to the Automotive industry.