Maruti Suzuki, Hyundai, Mahindra, Tata and Honda have announced high double-digit decline in sales for the month of August 2019. The announcements were made on Sunday as the story of declining demand has been plaguing the auto industry since December 2018 marking it one of the worst slow down in Indian automotive history.
Maruti Suzuki has reported a drop of 34.3% in overall domestic sales at 97,061 units last month as against 1,47,700 units in August 2018. The compact segment which from Maruti Suzuki consists of cars as the Celerio, Ignis, Swift, Dzire and Baleno fell by 23.9% with 54,274 units as against 71,364 cars of the corresponding month from 2018.
Mahindra and Mahindra stated that the manufacturer’s sales in the domestic market dropped by 26% to 33,564 units in August 2019, compared to 45,373 units in August 2018. Their passenger vehicle division which includes utility vehicles, cars and vans, cumulatively fell by 32% with 13,507 units sold in August 2019 as compared to 19,758 vehicles in the same month of 2018. Their commercial vehicle business was down by 28%.
Honda Cars sold 8,291 units in August as against 17,020 units in the same month last year domestically The manufacturer reports a decline in sale 51%. Rajesh Goel, HCIL Senior Vice President and Director, Sales and Marketing mentioned in a statement that the de-growth in the auto sector is due to the poor consumer sentiment which is despite high discounts, making it the best time to purchase a vehicle.
Hyundai Motor India reports a decline of 16.58% in domestic vehicle sales as the manufacturer sold 38.205 units when compared to 45,801 units from August 2018. Vikas Jain, National Sales Head - Hyundai Motor India Limited said, “In August, HMIL has continued to be the market leader in Utility Vehicle Segment while maintaining its market share in Passenger Vehicles segment with a strong performance of Grand i10 Nios, Venue, Creta and Elite i20. We expect the coming festive season will be a turnaround period in the market with positive customer sentiments.”
Toyota also reported in the negative as domestic sales for the manufacturer fell by 24% at 10,701 units in August 2019 as compared to 14,100 units in August 2018. N Raja, MD, Toyota Kirloskar Motors said that in addition to the poor customer sentiments, severe flood across states has also impacted the demand along with the unfavourable exchange rate not helping in managing and controlling costs by the manufacturers. He also mentioned that the recent measures announced by Finance Minister Nirmala Sitharaman to boost the auto sector are likely to spur some demand which is a much-needed relief.
With inputs from PTI