Car, commercial vehicle sales plunge; C-segment does well

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New Delhi: The high interest rates have created much friction on the roads, it seems. All major two-wheeler and four-wheeler companies have reported a steep decline in November sales.

Maruti Suzuki India, the country’s largest carmaker, reported a 27.4% decline in sales, its biggest fall this fiscal. The company sold 47,103 cars in November compared to 64,885 in the same month last year.

While sales of cars from Maruti’s A2 umbrella—Alto, Wagon-R, Zen, Swift and the newly launched A-Star-—fell by 26.6%, the once iconic Maruti 800 saw sales plunging by 59%.

The country’s second largest vehicle manufacturer, Tata Motors, reported a 30% decline in total sales to 32,696 units from 46,947 vehicles sold in November last year. Domestic sales of commercial vehicles dipped by 40% to 16,229 units from 26,895. Sales of passenger vehicles were down 12% to 14,327 units from 16,322. The Indica range saw a 13.8% decline in sales at 9,039 units. Exports declined 43% to 2,140 vehicles from 3,730 a year ago.

The trend shows that upper-end models have fared better than the entry and mid-segment ones. For instance, Maruti’s models in the hi-end category like SX4 and Dzire registered a growth of 40.3% at 5,975 units. Tata Motors’ Indigo range reported a 73% growth over November 2007 at sales of 3,477 units. Honda Siel Cars India, a manufacturer of premium cars, also clocked a growth of 15% in November, selling 5,090 units against 4,425 units sold a year ago.

However, General Motors India saw its car sales going down by 19.5% in November at 4,307 units compared to 5,356 units sold a year back. The hatchback Spark was the largest selling car from the company’s stable, accounting for nearly 58% of its sales.

Mahindra & Mahindra Ltd recorded the steepest decline among all major four-wheeler manufacturers at 37.74%. The company’s total sales, including exports, dipped to 11,569 units against 18,583 units in the same month last year.

In the two-wheeler segment, Hero Honda Motors reported almost a flat growth at 0.4% during November at 289,426 units . “Our performance in November comes against several odds. The scarcity of retail finance in many key markets and the high rates of interest remain a major concern,” said Anil Dua, senior VP, marketing and sales, Hero Honda Motors.