Auto Slowdown: Sales fall by 23.5 per cent; Worst Slump in 20 years

Data shared by the Society of Indian Automobile Manufacturers (SIAM) on Monday showed declining August sales

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Automobile sales in India suffered further ahead as the month of August was bad for the economy. According to the data shared by the Society of Indian Automobile Manufacturers (SIAM) on Monday, domestic sales of passenger vehicles fell 31.6 per cent year-on-year to 196,524 units last month. That’s the steepest decline in the last 20 years. 

Two-wheeler sales also dropped by 22.24 per cent to 1,514,196 units against 1,947,304 units in the same period last year. Companies, wary of piling inventory, resorted to holding onto their stock. They also cut production, which led to a decline in dispatch to dealers.

In July, overall auto sales had witnessed its sharpest decline in nearly 19 years, dropping 18.71 per cent to 18,25,148 units last month as against 22,45,223 units in July 2018. 

The fall in PV sales in August was also the tenth consecutive month of decline. In fact, all vehicle categories witnessed decline in sales during the month. In the PV segment, market leader Maruti Suzuki India posted 36.14 per cent decline in its August sales at 93,173 units. Hyundai Motor India also witnessed 16.58 per cent fall at 38,205 units while Mahindra & Mahindra saw a drop of 31.58 per cent at 13,504 units during the month.

In the two-wheeler category, Hero MotoCorp registered a 20.97 per cent drop in sales at 524,003 units, while rival Honda Motorcycle and Scooter India saw sales decline by 26.26 per cent to 425,664 units.

Chennai-based TVS Motor Company saw its sales slump by 20.37 per cent at 219,528 units in August.

On the other hand, retail sales data for August showed a somewhat better picture in terms of sales, pointing to inventory correction taking place in the industry. Total automobile sales declined by 4.15 per cent to 1,600,376 units as compared with 1,669,751 units in August 2018, according to the Siam data.

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