The Hindu Business Line : Car sales marginally down in June

PASSENGER car sales fell 0.89 per cent in the domestic market in June - the second time in the last six months - to 64,464 units from 65,046 units in the same month last year.

Six of the eleven car makers, including Hyundai Motor India and Tata Motors, reported a decline in sales in the period, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).

An industry analyst, however, termed the dip in sales a temporary one, adding that a slight delay in the onset of monsoons in the Northern region and the increase in fuel prices could have affected sales.

The last time car sales saw a dip this year was in February, when sales dropped 4.2 per cent to 62,072 units (64,819) due to anticipation of a price cut following the Budget.

Car sales in the first quarter of the current fiscal, however, saw a modest 8.24 per cent increase to 1,96,910 units (1,81,919 units).

Sales of motorcycles continued the growth run in June as well, moving up 13.67 per cent to 4,15,598 units (3,65,604 units).

Bike sales in the quarter under review stood at 13,10,439 units, a growth of 21.9 per cent over 10,74,890 units earlier.

However, scooter and scooterette sales dropped as much as 15.79 per cent to 65,035 units (77,234 units). This could be attributed to the ongoing strike at the factory of segment leader, Honda Motorcycle and Scooter India (HMSI), which saw sales decline by 22.4 per cent to 25,530 units (32,912 units).

Meanwhile, sales of commercial vehicles in June were up by 15 per cent at 27,035 units (23,609), with a reversal in the declining trend in sales of medium and heavy commercial vehicles (M&HCVs).

Total M&HCV sales in June stood at 16,208 units, a growth of 16.6 per cent over 13,898 units in the same month last year. On the other hand, light commercial vehicles sales were up 11.49 per cent at 10,827 units (9,711 units).

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