After automotive manufacturers recorded their sharpest sales decline in 19 years in July, fears that the trend could continue into August were confirmed on Sunday, as numbers released by Tata, Honda, Toyota and Mahindra reveal a significant slump in sales.
Worst hit was Tata Motors, which reported a 58 per cent dip in passenger vehicle sales in August, shipping 7,316 units — down from 17,351 units the previous year. The company saw a 45 per cent drop in commercial vehicles sales.
A statement by Girish Wagh, Tata Motors President, Commercial Vehicles Business Unit, said, "Subdued demand sentiment due to poor freight availability, lower freight rates and general slowdown in economy continued to hamper the commercial vehicle demand. System stock reduction through retail focus and aligning production, will continue to be our approach, while cautiously monitoring the market, in these challenging times. As a result, retail sales are estimated to be ahead of wholesale by over 25 per cent in August. We are looking forward to a positive impact of the recently announced stimulus package by the government."
Honda reported a 51.28 per cent decline in domestic sales at 8,291 units in August, against 17,020 units in the same month last year.
"The auto sector continues to witness high de-growth due to poor consumer sentiment," HCIL Senior Vice President and Director, Sales and Marketing Rajesh Goel said in a statement.
Maruti Suzuki, India’s largest carmaker, reported a 32.7 per cent drop in total sales in August compared to the previous year, selling 106,413 units. Domestic sales dropped by 34.3 per cent.
Maruti’s largest decline was in the Mini (Alto, WagonR) and Midsize (Ciaz) segments, with a 71.8 per cent and 77.2 per cent drop in sales respectively.
Toyota Kirloskar Motor Pvt Ltd reported a 21 per cent decline, selling 11,544 units in August. Commenting on the sales performance, TKM Deputy Managing Director N. Raja said, "The consumer sentiment continues to be muted in the month of August, with customers deferring their purchase of vehicles. Severe floods across states has also hurt the demand in the industry. Unfavorable exchange rate is not helping our cost."
He, however, said the recent measures announced by Finance Minister Nirmala Sitharaman to boost the auto sector with cheaper car loans, improving liquidity through credit expansion to public sector banks, deferring of one-time registration fees, higher depreciation for all vehicles and lifting ban on purchase of new vehicles in government departments are likely to spur some demand which is a much needed relief.
Mahindra & Mahindra reported a 25 per cent decline overall between its passenger and commercial segments.
Hyundai Motors said sales dipped 9.54 per cent decline, with 56,005 units sold in August.
In an IANS poll that forecasted a 30 per cent slump in sales in August overall, industry experts attributed the dip to the havoc caused by the monsoon rains.
Vehicle sales in India had been falling for nearly ten months, prompting auto manufacturers to shut production in August. The Automotive Component Manufacturers Association (ACMA) of India estimated that nearly ten lakh jobs could be lost if trends continue.
With inputs from PTI