Business Economy

Automobile sales continue to slump

The Indian auto industry continued to pass through a tough time in June 2019 with declining sales due to the ongoing NBFC crisis, liquidity issues, high interest rates and economic uncertainties in the market.

Maruti Suzuki Ltd. reported an overall sales decline of 14% to 1,24,708 units compared to 1,44,981 units in June 2018, including exports.

While exports were up 5%, the total domestic passenger vehicles sales were down 17.2% at 1,11,014 units.

Hyundai Motor India also reported a dip in sales of 3.2%.

The firm posted a domestic sales of 42,007 units as compared to 45,314 in the same period last year and exports stood at 16,800 units against 15,408 units.

M&M’s UVs grew 8%

However, Mahindra & Mahindra Ltd (M&M) despite reporting overall lower sales volume has become the only automaker to report positive numbers in the passenger vehicles (utility vehicles, cars and vans) segment for the month of June, 2019.

The passenger vehicles segment grew 4% in June 2019 to 18,826 vehicles.Growth was led by its three recent product launches namely XUV 3OO, Marazzo and Alturas G4, in an otherwise slow market.

For June 2019 M&M sold 17,723 utility vehicles, a growth of 8%. Commercial vehicles sales were down 15% at 16,394 units, medium and heavy commercial vehicles sales were down 36% and exports were also down at 11%. The company’s overall sales stood at 42,547 vehicles, compared to 45,155 vehicles in June 2018.

Veejay Ram Nakra, chief of sales and marketing, Automotive Division, M&M Ltd. said, “The market sentiment continued to remain subdued, especially in the passenger vehicles segment.”

Tata Motors’ commercial and passenger vehicles domestic business sales fell 14% to 49,073 units.

Commercial vehicles (CV) domestic sales at 35,722 units registered a drop of 7%. The company’s PV domestic sales dropped by 27% to 13,351 units.

Funding woes

Girish Wagh, president, CV business unit, Tata Motors said, “Both M&HCV and the SCV segments have been hit by poor consumer sentiment, falling freight rates and difficulty of funding from NBFCs. The progress of the monsoon will be a key factor for the revival of demand in certain segments over the next quarter.”

Sibendra Barman, vice-president, sales marketing and customer support, passenger vehicle business unit (PVBU), Tata Motors, said: “Auto Industry has been de-growing for the past 4 quarters. Customer sentiments remained low due to the overall slowdown in economic growth.”

Ashok Leyland Ltd reported a 19% decline in total vehicles sales at 12,810.

Toyota Kirloskar Motor reported a 19% decline in total sales at 11,365 units.

Honda Cars India sold a total of 10,566 units as compared to 17,602 units sold in June 2018.

TVS Motor Company registered sales of 2,97,102 units in June 2019 as against 313,614 units in the month of June 2018.

Bajaj Auto reported a marginal improvement in total sales at 4,04,624 units as compared to 4,04,429 units sold in June 2018.

Source: thehindu.com

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