Passenger vehicle (PV) sales in India dropped by 17.07 percent in April, the sharpest decline since October 2011, as weak customer sentiment led by liquidity crunch, uncertainty revolving elections and high product prices hit sales. The domestic sales dropped for a sixth straight month in April to 2,47,541 units against 2,98,504 units in the year-ago month. It is the worst drop in PV sales since October 2011 when sales had dropped by 19.87 percent.
All major segments, including two-wheelers and commercial vehicles, witnessed a fall in sales in April, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Domestic car sales declined 19.93 percent to 1,60,279 units last month compared to 2,00,183 in April 2018. Motorcycle sales declined 11.81 percent to 10,84,811 units last month as against 12,30,046 units in the year-ago month.
Total two-wheeler sales in April plummeted 16.36 percent to 16,38,388 units compared to 19,58,761 units in the year-ago month.
On similar lines, commercial vehicle sales were down 5.98 percent to 68,680 units in April. Vehicle sales across categories registered a decline of 15.93 percent to 20,01,096 units from 23,80,294 units in April 2018, SIAM said.
In the last ten years, one has not seen anything like this when all the segments were down. The start of the new financial year has not turned out to be very good, SIAM deputy director general Sugato Sen said.
Although there is some inventory correction taking place negative factors like liquidity crunch and enhanced insurance costs continue to affect sales, he added.
It is not only in the auto sector, but even FMCG segment is also witnessing a slowdown. Discretionary spendings are being held up. Maybe things will improve once the election results are over and a stable government is formed. They expect things to get better in the second half, SIAM Director General said.
He, however, added that retail sales were better than wholesales in April.
Market leader Maruti Suzuki India (MSI) reported a 19.61 percent decline in its PV sales at 1,31,385 units in April. Rival Hyundai Motor India Ltd (HMIL) also reported a 10.12 percent drop at 42,005 units.
Homegrown utility vehicles major Mahindra & Mahindra saw an 8.52 percent decline in its PV sales at 19,966 units last month.
In the two-wheeler segment, market leader Hero MotoCorp’s bike sales last month dropped 12.10 percent at 5,34,161 units. Rival Bajaj Auto, however, posted a growth rate of 2.55 percent at 2,05,875 units last month. Honda Motorcycle and Scooter India’s bike sales stood at 1,57,569 units, down 25.77 percent.
Total scooter sales last month declined by 25.89 percent at 4,89,852 units as against 6,61,007 units in April last year, SIAM said.
Market leader HMSI’s scooter sales were at 2,75,198 units, down 35.02 percent. Hero MotoCorp scooter sales declined by 51.8 percent to 33,771 units in April. Chennai-based TVS Motor Co, however, saw its scooter sales go up 7.78 percent at 92,251 units.
