The Hindu Business Line : Domestic auto sales plunge deeper in Nov, exports rise

Exports were the only silver lining in the automobile sales figures for November released on Wednesday by the Society of Indian Automobile Manufacturers. Domestic sales continued to shrink . The export growth was mainly steered by Hyundai and Maruti.

Passenger car sales saw a sharp decline with Maruti Suzuki that controls 52 per cent of the domestic car market recording a 25 per cent drop. It sold 43,258 fewer units during the month. Sales of Hyundai Motor India Limited declined by 23 per cent- the first time so far in the year. Companies such as Honda, General Motors and Tata Motors managed to sell more units thanks to better discounts and newer models.

“Showroom traffic has not so far seen a decline. This shows that customers are interested in buying cars. But as the rejection rates of banks keep rising on auto loans, it will turn away customers and showroom traffic would further decline,” said a Maruti official explaining the decline in sales.

“The year end is never a good period for car sales. It would only be by February- March that one would be able to gauge the trend. By then some impact of the excise duty cut would have been felt and if financing situation improves, sales could pick up,” said Mr Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers.

The commercial vehicle industry bore the brunt of the slump in manufacturing and construction industry. Truck and buses sales in November were down by almost 50 per cent. The medium and heavy commercial vehicle sales fell by 62 per cent to 8,325 units. Even the light commercial vehicle, which was till recently growing due to intra city movement of goods, posted a 33 per cent fall in sales to 12,312 units.

Two wheelers showed a contrasting tale as scooters sales rose 12 per cent to slightly over a lakh whereas motorcycles sales plummeted 20 per cent to 4.31 lakh units. Hero Honda bike sales declined to 2.67 lakh units from 2.71 lakh in the same month last year. Bajaj Auto reported a much steeper fall at 82,283 units, almost 50 per cent lower than November last year. However, the 51 per cent growth in two wheeler exports was mainly led by Bajaj and TVS.