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Car Sales Slumps For The 7th Straight Month

June 03,2019

The passenger vehicle segment saw a dip of 21.59% in May-19 due to economic uncertainty due to high financial cost and lack of purchasing power. The dismal performance of the automobile industry saw an 8 year low sales in the month of April 2019. All the major players in the Indian automobile Industry registered a de-growth in May-19 and for the industry, it is a straight 7th-month downward trend which is a matter of concern.

Maruti, M&M, Tata Motors, Honda, Toyota all have de-grown on May 19 as per the latest sales figures of SIAM.

OEMs

May-19

May-18

%Change

Maruti Suzuki

125552

163200

-23.07

M&M

20608

20,715

-0.52

Tata Motors

10900

17,489

-37.68

Honda Cars India

11,442

15,864

-27.87

Toyota

12,138

13113

-7.44

Total Domestic Sales

180640

230381

-21.59


The story of production cut continued with Maruti announcing a production cut of 10% to adjust dealer’s inventory levels. M&M which posted a 0.52% decline is quite hopeful of future and its President Mr.Rajan Wadhera who is also the President of SIAM said that due to general elections the sentiments of consumers and subsequent demand were subdued and this has led to inventory correction at the dealership level. Going forward M&M sees a boost in the auto sector owing to stable government and expected good monsoon season.

Similar sentiments were echoed by Mr.Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors who said that post-election the auto sector performance would improve. Tata Motors has focused on retails sales to reduce its network inventory in spite of muted consumer response registering a growth of 11% retail sales in May-19 over May-18

Mr.Rajesh Goel of Honda emphasized the liquidity crunch in the auto sector and increasing fuel prices will continue to be a challenge which auto manufacturers must be prepared to face. He is also hopeful that a favorable monsoon and expected actions from the new government would have a way to a revival of the automobile sector.

Image Source: ETAuto

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Autojobs4ublog Team