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Passenger Vehicle Sales Drops By 17 Percent In April 2019

May 02,2019

The overall passenger vehicle wholesales declined by 17% year on year at 2,45,599 units in April 2019 compared to 2,96,369 units dispatched in the same month last year, reveals an industry estimated data.

The primary reason behind the fall in sales are the political uncertainty and stressed consumer sentiment say, industry experts.

Impending agri-distress due to below monsoon expectations also contributed to the weak demand. This also lead to Society of Indian Automobile Manufacturers (SIAM) projected a conservative single digit growth in FY2020. Increase in cost of acquisition owing to rising commodity prices also marred the demand.

Nikunj Sanghi, Director, International Affair, FADA said, “One of the biggest indicators of weak consumer sentiment is de-growth in FMCG sector, as well as tightening of NBFC credit lines, have been a major contributor in this”. However, he feels that retail sales at the dealership the level will be slightly better”.

 

Attributing to changing safety norm Gaurav Vangaal, Sr. Analyst -Automotive Forecasting, Light Vehicles, IHS Market says "Lot of car manufacturers are stocking and de-stocking vehicles adjusting to new safety norms and upcoming emission norms due to which the dispatches from the factory are low” added 

Also, last year in the month of February there were a lot of car launches in Auto Expo due to which there was a lot of excitement in the market and car sales went up during April 2018, hence a high base effect also played a role. 

Honda Cars India was the only manufacturer to registered positive growth, among the total 12 major car manufacturers.

OEM

Apr'19

April'18

%Growth (YoY)

Maruti Suzuki

1,31,385

1,63,434

-19.61

Hyundai

42,000

46,735

-10.13

M&M

19,966

21,927

-8.94

TATA

12,600

17,235

-26.89

Honda

11,272

9,143

23.29

Toyota

9,300

13,037

-28.66

Ford

6,515

7,428

-12.29

Renault

6,250

7,422

-15.79

Nissan

2,027

3,526

-42.51

VW

1,900

3,109

-38.89

Fiat

1,258

1,973

-36.24

Skoda

1,126

1,400

-19.57

Total

2,45,599

296369

-17.13

Source: Industry Reports

The double-digit de-growth in passenger vehicle sales are largely a reflection of dip in sales of Maruti Suzuki which covers 50 per cent of the market.

The maker of best-selling cars like Alto, Dzire, Swift, and Baleno posted a decline of 19.61 percent at 1,31,385 units (vehicle sold to Toyota not included) in April 2019 compared to 1,63,434 units in the same month last year.

Despite fielding new products top manufacturers like Hyundai Motor India, M&M, Tata Motors saw a decline in domestic sales by 10 percent, 9 percent, and 27 per cent respectively.

Honda cars India is the only car marker which posted strong double-digit growth of 23.29 percent with 11,272 units.

Among the top losers, Nissan India saw a decline of 42.51 percent in domestic sales at 2027 units in April 2019. While Volkswagen and Fiat saw a major decline in domestic sales.

OEMs

Apr'19

Mar'19

% Growth (MoM)

Maruti Suzuki

1,31,385

1,45,031

-9.41

Hyundai

42,000

44,350

-5.30

M&M

19,966

25,982

-23.15

TATA

12,600

17,810

-29.25

Honda

11,272

17,202

-34.47

Toyota

9,300

12,818

-27.45

Ford

6,515

8,271

-21.23

Renault

6,250

7,127

-12.31

Nissan

2,027

2,902

-30.15

VW

1,900

2,751

-30.93

Fiat

1,258

1,521

-17.29

Skod a

1,126

1,401

-19.63

Total

2,45,599

2,87,166

-14.47

 

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Author - Ashok

Auto Enthusiast with over 23 years of experience in automobile Industry